"They
are printing money. The reason for suppressing
the gold price is to control the perception
that the US dollar is a sound currency." ~ Bix Weir

"In
consequence, financial disaster is quickly
forgotten. In further consequence, when
the same or closely similar circumstances
occur again, sometimes in only a few
years, they are hailed by an always
supremely self-confident generation
as a brilliantly innovative discovery
in the financial and larger economic
world. There can be few fields of
human endeavor in which history counts
for so little as in the world of finance.
Past experience, to the extent that
it is part of memory at all, is dismissed
as the primitive refuge of those who
do not have the insight to appreciate
the incredible wonders of the present.
There is protection only in a clear
perception of the characteristics common
to these flights into what must conservatively
be described as mass insanity." ~ John Kenneth Galbraith (famous
1960s era economist)

"The
bust is the eventual end. Quite frankly,
it has to occur based on what the Federal
Reserve has done over the last five
or six years. I would envision it is
going to be like the seventies, but
on steroids. Whether [the timing is]
in the next 12 months or the next three
years, I cannot really say for sure." ~ Chris Casey (fund manager)

"Personally
some measure of enjoyment comes my way
watching the COMEX squirm, suffer, and
show desperation for gold supply. They
will shut down before too many more
months. It will be full of intrigue
how they describe their death throes,
with colorful inventive fiction about
exaggerated antagonists who laid waste
to their corrupt arena. I want lawsuits
and damages and settlements and prosecution
and prison time. Either justice or seeing
officials to go into exile. Let them
seek refuge in
Paraguay, where their grandfather nazis hid. Those
who can detect the broad banker criminality
and baseless paper wealth will find
few lifeboats. I do not plan to share
my lifeboat with anyone, except one
woman who keeps my heart, and not even
her mother." ~ the Jackass

"Unfolding
events will soon reflect the purchasing
power in precious metals that you cite
in the Hat Trick Letter from projected
Gold Trade Settlement benchmark values.
It is only a question of time. Much
progress has been completed in its platforms.
I am fully convinced that the price
of Gold will go far past even the $7000/oz
figure you cite, and the price of Silver
will go far past even the $150/oz figure
you cite. Both will be in today's USD
units. Both could very easily make moonshots,
and go multiples higher. One need not
be a rocket scientist to analyze the
price trajectory. The meteoric rise
is pure logic. The biggest scandal of
all is only beginning, with Allocated
Gold Accounts." ~ The Voice (never prone to exaggeration)

"Every
action has a corresponding reaction.
That includes events with men." ~ from the Count of Monte Cristo (book and movie)

##
QUICK CHARTS & DIRE SIGNALS

◄$$$ USTREASURY BOND LONG-TERM YIELDS ARE OFFICIALLY OUT OF CONTROL, WITH
THREAT OF SYSTEMIC FAILURE. DIRECTLY
AHEAD ARE MAJOR LOSSES TO BIG BANKS
ON INTEREST RATE DERIVATIVES. THE BIG
US-BANKS ARE LINE UP TO BE KILLED, AS
THEY URGENTLY UNWIND THE USTBOND CARRY
TRADE, WHICH THEY BOASTED AS BEING EASY
MONEY TO REVIVE BALANCE SHEETS. THE
WORLD IS DUMPING USTBONDS. $$$

◄$$$ THE RISING CRUDE OIL PRICE REPRESENTS AN INDIRECT DIRE CURRENCY SIGNAL.
THE HIGHER ENERGY COSTS POSE A BIG THREAT
TO THE ENTIRE USECONOMY. SYSTEMIC FAILURE
ON WATCH. THE OIL TRADE IS A HEDGE AGAINST
ALL FIAT PAPER CURRENCIES. $$$

◄$$$
FUKUSHIMA RADATION FANS OUT. FOOD SYSTEM AFFECTED. $$$

The
August Money War Report showed a
Pacific
Ocean map, which was presented incorrectly.
The map shown was for the tsunami sea
level surges, as measured in centimeters.
The key was the legend on the right
side. Below is the
Pacific
Ocean current map, which makes far more
sense. The west coast of the entire
North American continent is exposed
to the ongoing radiation. The
Fukushima
waters are heavily contaminated, pouring
out multiples of
Hiroshima per day!! Although the claim sounds fantastic, the leading
scientists and my sources confirm exactly
this threat. Thanks to an alert subscriber,
who pointed out the error.

The following is a computer simulation output of the radation as it is diluted
over time. Scientists are in agreement
that the coastlines and fish food supply
will not be saved by rapid dilution.
Note the expected dilution after 1 year,
2.5 years, 5 years, and 10 years. The
contamination of the
US
food supply is already being seen. The
stillborn human births are rising 6-fold
to 7-fold in parts of the
Western
United States. See the InfoWars article
(CLICK HERE).

##
INTRO GOLDEN NUGGETS

◄$$$ THE JFKENNEDY EXECUTION MARKED THE END OF THE AMERICAN REPUBLIC,
FOLLOWED BY THE BROKEN GOLD STANDARD,
AND THE INTRODUCTION OF THE FASCIST
STATE. JUST A WILD THEORY, PROBABLY
OF VERY LITTLE MERIT, THE LOGIC DELUSIONAL.
MAYBE SPOT ON. $$$

The Fascist state merged the leadership of the banks and security agencies,
with the military a willing poodle.
It was the hatching of what was given
birth in the creation of the US Federal
Reserve. The Fascists took control by
killing John F Kennedy, who had many
good restoration plans. The next step
was for Nixon to depart from the Gold
Standard, part of the plot to kill the
president who wished to reinstate the
Silver Certificate. Giving Wall Street
access to monetary control was the goal,
and the requirement for Nixon handed
the White House post. War became the
major theme of the state with
Vietnam,
whose hidden motive was to capture the
Cambodian Triangle for its heroin trade.
More ordinance was dropped on
Laos
and
Cambodia
than on
South Vietnam or
North Vietnam, a little known fact. The lucrative
defense contracts were the gravy, replete
with Senator bribes. Numerous fascist
governments had very cozy friendly relationships
with the secretive US Fascists, such
as in Latin America, especially
Argentina, where photos were
forbidden. Any repressive fascist regime
that opposed communism was supported
by the USGovt, regardless of human rights
violations. The lead fascist ambassador
has always been Kissinger. The
US entered the Balkan War
in the 1990 decade, only for to capture
the heroin trade, wrested from the Chechens.
The Kosovo base serves as a critical
distribution point today.

The
Fascist
State had a full blown global introduction
(coming out party) on 911 with a statement
made to the banking community and military
complex. The
World
Trade
Center
was the biggest bank robbery in world
history, netting over $300 billion in
gold, bearer bonds, and diamonds. The
Patriot Act is the Nazi Manifesto. The
USDept Homeland Security is the Gestapo.
The FEMA Camps are the gulags. Airport
and border security are the molestation.
Torture in prison is the manner of contempt
and disrespect for human dignity. The
TARP Fund was self-payment bonus done
as added insult following the robbery
of national home equity. The News Networks
are the propaganda megaphone, recently
extended to
Hollywood
film reels. The vaccines and chemtrails
are the genocide. Restricted money is
the device to enforce its debt slavery.
Narcotics is their $trillion profit
center with vertically integrated business,
and protected money laundering with
big banks. War is the calling card,
endless war, promoted war. Genetics
is the laboratory pursuit, both human
and food. Control of weather and earthquakes
is the play toy, used to play God. Witness
the Nazi nation, a rising powerful police
state. Plenty of resident psychopaths
and violent types to recruit. One would
think maybe this organization was more
related to King Louis and Marie Antoinette
than the Old Nazis with all the guillotines
being delivered to the FEMA Camps. Enough
of wild theories and crazy stories from
fertile imagination. No serious person
would believe such a historical tale.
Just a tail end of a nightmare. Please
excuse the rambling by a crazy delusional
inventive Jackass, who never studied
political science and suffers from illogic.

On occasion of the publication of his latest book, German author Mathias Broeckers
talks about the assassination of John
Fitzgerald Kennedy in
Dallas
Texas on November
22, 1963. He sees the event as a coup
d'etat that was never rolled back. Papa
Bush was in charge of the
Dallas
security detail, run by
Langley, not the Secret Service on that fateful
day. See the Lars Schall inteview (CLICK HERE).

◄$$$ KAREN HUDES (FORMERLY OF WORLD BANK) REFERS TO A RETURN TO ORDER,
AND A METHODICAL CLEAN-UP OF THE CRIMINAL
BANK SECTOR BEING TIDY. IT WILL NOT
BE NEAT AND CLEAN. INSTEAD, DISORDER
WILL COME BY STORM. ESCAPE HATCHES WILL
BE TAKEN. EXTERNAL FORCES WILL SOON
BEGIN TO BE EXERTED FROM THE EAST IN
MORE OBVIOUS WAYS. $$$

Karen Hudes talks how in response to whistle blowers such as herself, the Rule
of Law will be firmly introduced and
the cabal will be harnessed for the
harmful influence in other countries.
She gives the impression that all will
be well soon. My response is firm and
strident in opposition. Hudes comes
from within the system and inside the
dome of perceptions, including the indulgence
of power. All her perceptions are based
upon power within, not outside. Her
implication of a return to order in
the next several years has no chance
whatsoever of happening. Disorder has
taken root and is spreading like wildfire,
not the least factor of which is the
rampant food price inflation in the
rest of the world. Most emerging
market nations have seen roughly a 30%
food price inflation effect in the last
six months from the USFed monetary policy
action, seen as meted out in unilateral
manner. The USGovt continues to
make policy in foreign lands, to control
SWIFT codes for banks, to block the
pipelines, to permit drone aircraft
to attack sites in Pakistan, to apply
sanctions in trade, to urge governments
like India to restrict gold sales, and
to permit the big banks to operate with
criminal impunity, while they continue
to interfere with every conceivable
financial market. Even though the bankers
are in a certain retreat, they still
lash out. Be sure to know that the utmost
respect is given Hudes for courage and
forthright actions. But her views on
a return to order are childlike.

So the West serves the bankers with welfare and toxic bond redemption, while
the rest of the world suffers high cost
to feed themselves and families. The
stress within the system is unspeakable,
and has already reached critical levels
of stress for fractures, breakdowns,
and collapse. The buildings are falling
down too fast to maintain the order
Hudes implies and expects. The IMF has
converted into a Chinese office, and
the World Bank has fallen into a defunct
dusty corner office. Such transitions
indicate diminished Western power. The
East is scurrying to resist inflation,
to install the USD alternative, to replace
key portions of the financial structures,
but they lack experience and skill.
They will find it. Like countless smart
well intentioned people who operate
from the
US &
UK, Hudes never addresses Eastern developments.
The Jackass spends 20% of the time bringing
the East into the equation. She (like
Paul Craig Roberts) are solid people
with integrity. But they have a blind
spot from being power brokers on the
inside of the Dome of American Perception.
The system does not have 10 years, but
rather 10 months. The bankers will not
be treated to justice, or be restrained
by law. They will continue to be given
a pass. They will respond like cockroaches
soon, and seek dark corners (like
Paraguay),
to escape through cracks (like private
airports), while some vanish mysteriously.

◄$$$ TRADEOFF IN GOLD. AN ACCEPTABLE COMPROMISE WITH THE BANKSTERS COULD
BE TO GIVE THEM A FORCE MAJEURE TO ESCAPE
THE GOLD CONTRACT LOSSES. THEN FREE
GOLD FROM THEIR CLUTCHES, WITH THE COMEX
SHUTDOWN. FOLLOW WITH ALLOCATED GOLD
ACCOUNT RESOLUTION. CLIMAX WITH GOLD
TRADE SETTLEMENT SYSTEM PUT INTO PLACE.
COMPROMISE TO RELEASE GOLD. BUT PERMIT
LAWSUITS AGAINST THE COMEX ON A CASE
BY CASE BASIS. THE GOLD PRICE WOULD
RISE TO LEVELS MULTIPLES HIGHER FROM
REINSTATEMENT OF THE ALLOCATED ACCOUNTS,
AND CONVERSION OF THE USTBONDS AT THE
BRICS BANK. THE KICKER WOULD BE GOLD
SUPPLY COMING FORWARD FROM PRIVATE BANKER
ACCOUNTS (
WALL STREET AND
LONDON EXECUTIVES), IN HIDING FOR 20 YEARS. $$$

The logic is becoming simple really, on the motive for the gold market ambushes. The banker cartel wishes to escape
the catastrophic losses in the gold
futures short contracts that have piled
up like a mountain. They wish to wiggle
out of COMEX gold & silver contracts
with Force Majeure declarations.
Perhaps give them their escape hatch,
but two important consequences could
be opened, even agreed upon. First,
permit the raft of lawsuits for contract
fraud, until the time of the declaration.
Some might regard such leniency as unwarranted,
but the fraud has been going on for
20 years. Plenty of convictions could
be won. Untold tonnage of gold has been
improperly taken from allocated accounts
to satisfy COMEX deliveries. Untold
tonnage of gold has been raped from
the SPDR Gold Trust (aka GLD Fund).
Untold tonnage of gold has been stolen
from
Fort
Knox. Untold so-called Evergreen Contracts
have been used from gold mining firms,
to suppress the gold price, with no
intention of offering supply in contract
satisfaction.

Second, permit the Gold market to be free, with the COMEX banned from further
contracts in the gold world. Third,
conduct full accounting of the Repatration
demands for official gold accounts,
like for Germany, Austria, and the Netherlands,
even Mexico and Ecuador. Prosecute
abuses of the Allocated Gold Accounts,
forcing purchases to reinstate the pilfered
accounts, regardless of how high
the gold price goes. Require all private
bullion banks to reinstate accounts
also. This step is very significant,
since the total tonnage of misused allocated
gold could be over 40,000 tons. Their
frantic search for gold supply would
push the gold price quantum levels higher,
but also bring much gold out of private
accounts owned by the bank cartel executives
themselves. Imagine new supply coming
from banker private accounts like in
the Carlyle Group.

Fourth, encourage the BRICS Bank to proceed with its
transition into the role of Gold Trade
Central Bank. Have the Turkish bankers and other
smaller players serve as intermediaries
in gold trade settlement. This step
is the most significant, since it would
have the BRICS Bank operate as a
processing site to convert USTreasury
Bonds and USAgency Mortgage Bonds into
Gold bullion. Many would regard
the event as debt writedown and liquidation,
properly so. The Gold price would return
to a proper price multiples higher,
to reflect its value, but also to effect
a powerful USDollar devaluation in the
process. In the next phase, convert
the EuroBonds, UKGilts, and Japanese
Govt Bonds into Gold bullion. Essentially
the BRICS Bank would convert much FOREX
reserves into Gold, in particular from
emerging nations. Then the widely held
reserves in the many national banking
systems would transition to gold with
similar conversions. The Chinese could
manage their own conversion of Chinese
Govt Bonds into gold. The target Gold
price of $7000 would be achieved rapidly,
like in the course of 12 to 18 months
in a grand reset.

Clearly to the savvy observers, it seems like a Force Majeure is the goal on
the futures contract for Gold with all
the naked short ambushes, with all the
short contract covering by the big Anglo
banks. The banker escape from contract
losses comes with some heavy consequences.
The outcome is a released gold price.
The global demand has skyrocketed in
recent months. Conversion from sovereign
bond and quasi government bonds would
be free to chase the gold price and
bring about some equilibrium at a very
high price, at least at $5000/oz, likely
reaching $7000/oz, and possibly heading
toward $10,000/oz. The Jackass would
take that tradeoff anyday. The Force
Majeure is worth it, especially if the
bankers start to go into exile or to
vanish in large numbers. Prosecution
matters little if money is freed, since
hidden forces would lead to many elite
criminal bankers into a new world with
strange surroundings.

◄$$$
BRAZIL OGX ENERGY FIRM IS
GOING BUST (BASTISTA EMPIRE). PREPARE
FOR ADDITIONAL INDIRECT EXCHANGE, AS
USTBONDS WILL BE RETURNED TO SENDER.
FOREIGN CAPITAL IS DESPERATELY SOUGHT
TO MAINTAIN CONTROL OF THE OFF-SHORE
BRAZILIAN ENERGY OPERATIONS. $$$

Bondholders of
Brazil's OGX are urged to
act quickly, since no income is generated.
The buyers will appear, likely of Chinese
shores. Look for USTreasury Bonds to
be used in payments. The troubled
Brazilian oil & gas company OGX
is headed toward the biggest corporate
debt restructuring in
Latin
America ever, a gigantic bankruptcy.
The tycoon Eike Batista has been in
the Western news lately, as his vast
business empire crumbles. A feared default
on OGX bonds is near. Be sure to know
that a restructure of debt does not
solve the problem, since the businesses
are not generating sufficient revenue. The former crown jewel in the Batista
X empire is hemorrhaging cash while
struggling to achieve the promised levels
of oil production at its offshore fields.
The flow is not there. The corporate
bonds plumb new lows. An out of court
deal is sought to recoup some money
from the $3.6 billion in OGX bonds that
are outstanding. OGX has sold a 40%
stake in one offshore field to Petronas
of Malaysia. Furthermore, market chatter
that Batista is seeking potential buyers
of OGX's other offshore oil fields has
left the impression that the company
is being drained of assets.

The bondholders are in big trouble. The
Brazil
legal system might become an adversary
for foreign players. It is noted not
to be creditor friendly. The pooling
of assets and liabilities of related
debtors is not applicable under Brazilian
law, which views each subsidiary as
a separate entity. Complicating
matters is that the largest Brazilian
banks are involved at EBX, with its
subsidiaries. The total outstanding
debt at the Batista X companies is around
US$10 billion, not including undisclosed
liabilities at the holding level, according
to FTI Consulting. New funding is being
searched for eagerly. A voluntary debt
exchange could be an option. Yet while
this may help OGX reduce its cash drain,
it may also prompt regulators to view
the company as insolvent, which would
trigger the termination of vital off-shore
concessions. Nor does it solve the problem
of how OGX will raise the funds to remain
in operation. The corporation requires
capital urgently. Enter the Chinese,
who have had a swap facility in place
for over five years with
Brazil. Then comes the Indirect
Exchange at work, where the Chinese
dump more USTBonds. See the CNBC article
(CLICK HERE).

◄$$$ ENERGY PRODUCERS ARE MOVING AWAY FROM SHALE SITES, SINCE THEY ARE
GRAND MONEY LOSERS. EVEN EXXON-MOBIL
ADMITS IT IS A LOSING VENTURE. DEPLETION
RATES ARE HUGE, AND CASH FLOW IS CONSUMED
BY NEW WELLS DRILLED. IT IS A PONZI
SCHEME. $$$

Exxon Chief Executive Rex Tillerson broke from the previous company line that
it was not being hurt by natural gas
prices. He admitted by Exxon-Mobil is
suffering losses from the weak price.
At a meeting before the Council on Foreign
Relations in
New York, he said "We are all losing our shirts today. We are
making no money. It is all in the red." The Shale gas projects are part
of their gas fields. Furthermore,
the Big Oil firms are slowly and quietly
backing out of shale energy, so as to
avoid rendering too much harm to their
stock prices. The losses will be
staggering. The average depletion rate
of wells in the Bakken Formation (the
largest site in the
United
States) is reported
to be 69% in the first year and 94%
over the first five years. The cash
flow is eaten up by the new wells urgently
needed to sustain production. In the
next two quarters, friend and college
SRSrocco says to expect some serious
impairment charges coming. Then the
word really gets out that the national
project is a sham, a Ponzi scheme pushed
by the USGovt. Expect those shale energy
company stocks fall through the floor,
and go worthless. Halliburton has the
monopoly on fracking chemicals. See
the PressTV article (CLICK HERE).

◄$$$ GOLDMAN SACHS DELAY TACTICS IN THE ALUMINUM WAREHOUSE BUSINESS COST
THE USECONOMY $5 BILLION IN EXTRA COSTS.
THE GREAT VAMPIRE SQUID IS BUSY, AND
STILL EXPLOITS. NEW RULES ARE IN EFFECT
TO ALLEVIATE THE BOGUS BUT COSTLY WAITING
PERIODS. $$$

Wall Street's controversial warehousing businesses to about to face reform,
if not already. Numerous are the
victims in more Goldman Sachs fraud
due to bogus waiting periods and higher
premiums paid for quicker delivery in
the aluminum industry. The giant
vampire squid does whatever it wishes,
in order to extort more profit from
any and all financial markets it touches.
The New York Times accused Goldman Sachs
of costing the USEconomy an estimated
$5 billion a year extra, by making their
aluminum warehouse clients endure long
wait times and jacked up prices for
the metal. The bank owns the Metro Internatl
Trade Services, a Detoit-based warehouse
company which is a part of the London
Metals Exchange (LME) system. Goldman,
for its part, defended the business
in a Factsheet released last month.
The gaming of this metal market has
been a boon to the bank, offsetting
low yields for bonds elsewhere. According
to Morgan Stanley, the problem has started
to impact the price of aluminum in a
big way. New rules are in place to force
the Affected Warehouses to push metal
out as soon as it brings new metal in,
seen as a good first reform step. See
the Business Insider article (CLICK HERE).

◄$$$ HSBC CLOSED BANK ACCOUNTS AT OVER 40 EMBASSIES, CONSULATES, AND COMMISSIONS,
LEAVING DIPLOMATS AND THEIR FAMILIES
STRANDED. IT GAVE VERY SHORT NOTICE.
THE STRONGEST RUMOR IS ABOUT CURTAILING
DRUG MONEY LAUNDERING, FROM DIPLOMATIC
ABUSE OF CUSTOMS BYPASS, THE NOTORIOUS
DIPLOMATIC POUCH. $$$

HSBC bank has told dozens of foreign missions in
London
that it will close their bank accounts,
causing diplomats across the capital
scrambling to find a new place to put
their money. Havoc resulted. They cited
reduced business risks. The
Vatican's
ambassadorial office in
Britain,
the Apostolic Nunciature, is among those
affected. The bank actually said embassies
were subject to the same assessments
as its other business customers. Of
the 40 countries involved, 16 are offices
from African missions. HSBC stated that
five criteria must be satisfied: international
connectivity, economic development,
profitability, cost efficiency, and
liquidity. The London-based bank stated
that the missions are considered like
any commercial customers, at risk because
they fear the money can end up in a
money laundering or drug cartel. One
diplomatic source suspected that HSBC
feared being exposed to embassies after
it was fined $2 billion by US authorities
last year. See the BBC article (CLICK HERE)
and the Daily Mail article (CLICK HERE).

Think cocaine and heroin in diplomatic pouches, and big cash movements in the
return trip with the same pouches. Also,
something strange is brewing, with a
September 1st termination of government
and corporate immunity from prosecution.
The issue might not be so much about
keeping people scared, but about keeping
the appearance of cooperation. HSBC
is trying to take the high road, appearing
to cooperate on money laundering functions
by closing down accounts that diplomats
had abused in transporting drugs and
cash. The new sheriff in town is attacking
the bank syndicate. The same HSBC bank
has been embroiled in numerous scandals,
including LIBOR rigging, narco money
laundering across Latin America and
Asia, insider trading, tax evasion, and more. It is associated with
the Rothschild family, sporting a nickname
High Society British Crime. The bank
is in the process of shrinking its staff.
Last May, the HSBC Group announced a
cut of 14,000 jobs which goes counter
to any optimistic statements made by
CEO Stuart Gulliver about the future
perspective.

◄$$$
NORWAY MYSTERY ON FALLING KRONE CURRENCY MIGHT
BE EXPLAINED BY DIVERSIFICATION AWAY
FROM CURRENCY AND TOWARD GOLD BY
OSLO MANAGERS. OR BY VICIOUS TINKERING BY ANGLO
BANKERS IN VENGEANCE TO FORCE A HIGHER
ECONOMIC COST ON
NORWAY.
OR BY A COMPLEX ADJUSTMENT PROCESS FROM
THE CONVERGENCE BETWEEN THE BRENT OIL
PRICE AND THE
WEST
TEXAS OIL PRICE. $$$

The Norwegian Krone has been weak versus the USDollar and British Pound in recent
months. It has declined by 10% versus
the GBP since March. The nation is loaded
with huge oil wealth, although the output
from the
North
Sea had been falling until a recent
mammoth discovery. The sovereign
wealth fund in
Norway is worth at least $800
billion, a tremendous fund for a small
nation of under 5 million people.
One would expect the Norwegian haven
would be safe refuge from the insane
reckless USFed bond monetization. See
the Titi Tudorancea bulletin (CLICK HERE).

The opinion of a savvy global consultant was solicited and honored. He said
much, which follows, his comments, my
edits. The Norwegians have and are refusing
to have their wealth fund looted by
the Anglo banker syndicate. They have
managed to step aside from the
London
banker cabal of thieves and conmen,
who have been put under terrible pressure
in recent years. The Anglo offices pressuring
Norway simply do not understand how the Scandinavians
are wired. They are very sophisticated
and tough people. Their currency is
de-facto commodity backed, by Brent
oil from the
North
Sea. They recently discovered more oil
& gas than they already had in their
proven inventory. One can rest assured
that they do not disclose all of their
data to the public.
Norway is a very small country of only 4.8 million
people. They have the largest standing
army per capita of any country in the
world.
Norway
cannot be held hostage by anyone. If
their currency is pressured, it does
not really matter to them.

A remarkable angle is at work, worthy
of mention. Certain Norwegian technologies
are of crucial importance to many countries,
such as with many national energy industries.
A Norwegian girl was recently jailed
in
Dubai in the
Persian Gulf for her sexual behavior.
When she was at the point to be sentenced
for a couple of years in prison, the
Norwegian Govt asked the authorities
in the UAE how they intend to operate
their offshore exploration and production
platforms without STAT OIL engineers.
The next day the girl was pardoned by
the
Dubai ruler. Never threaten or provoke a Viking.
The recent weakness in the Norwegian
currency issue is a non-issue. The
bigger event was the
Oslo
violent incident in 2010, which was
done by the British MI6 in retaliation
for
Norway not to supply the
London banks with some odd $billions in cash infusions. The event
made the Norwegians very angry.

EuroRaj offered an opinion. He made some solid points also. From a technical
perspective, the NOKrone is a very illiquid
currency. Therefore, the Boyz in
London
and
New
York can easily move it either way.
Two theories why the NOKrone could have
weakened. 1) USFed Taper Talk has gone
away, since the NOK is the opposite
of S&P stock index, and money has
returned into the
US stocks. 2) European growth and global growth
is quite weak and hence oil exports
might be weak, leading to somewhat lower
current account surplus in
Norway. Never lose sight of the fact that the
giant Norwegian Oil Fund is a mover
and shaker in the financial world. Recall
an episode in 2010 when a terrorist
attempt was made in
Oslo
main offices. The Boyz were trying to
force the fund to invest in US and British
debt, but were rebuffed.

The Jackass believes that
Norway
is using some of the vast wealth stored
in funds to purchase more commodities,
including more Gold & Silver bullion.
The conversion from a NOK base to energy
& precious metals assets would bring
about a slight decline in the NOK. However,
it would also mean the NOK has a firmer
backing, unlike the vaporous USDollar
and British Pound currencies, both turned
toxic. The
Norway nation is the beneficiary of a $800 billion
sovereign wealth fund. Maybe the fund
is undergoing a diversification in defense
against the USFed Weimar initiatives
that destroy currencies and wealth through
unlimited central bank bond purchases. Perhaps the officials in
Oslo
are shifting from NOK to gold on a large
scale, which would make perfect sense,
and be ahead of the crowd. Doing so
would support Gold but pull down the
NOK. Perhaps a side effect is in progress
from the Brent convergence with the
WTexas crude oil price, a grand event
in itself. Very complex mechanisms had
been disrupted in the Brent versus WTexas
balance. A huge resentment should
be expected from the
Oslo
terror incident, which had an MI-6 and
Langley
signature clearly. The Jackass was informed
about British security responsibility
within days of the event. Remember the
Lone Gunman, a surefire telling signal
of the security agency cloak. The Norwegians
refused to assist the
London
bankers, who faced significant capital
problems. The entire incident was vengeance
by the Anglos, who surely have vowed
to continue the pressure. The US-UK
serve as the Axis of Fascism. Watch
Norway embrace the BRICS movement and the trade
settlement reforms.

◄$$$ THE INDIAN BOURSE SUFFERED A CRASH IN AGRICULTURE SHARES. ALTHOUGH
SETTLED IN CASH, PROBLEMS ARISE. A CASH
CRUNCH IN LIQUIDITY IS HITTING
INDIA.
$$$

The National Spot Exchange, which trades primarily agricultural commodities,
suffered a crash in early August. All
commodity exchanges in
India
are cash settled. Something happened
which caused the shares of one of the
exchanges (like NYSE, Deutsche Bourse)
to crash. By shares is meant the Exchange
Traded Funds such as DBA (Deutsche Bank
for Agriculture). A cash liquidity problem
has hit the Indian markets. See the
Bloomberg article (CLICK HERE).

◄$$$
AUSTRALIA UNVEILED A TAX LEVY
ON BANK DEPOSITS. ALTHOUGH SMALL IN
SIZE, IT OPENS THE DOOR TO A SEQUENCE
OF INCREASES WITH NO VOICE FOR ACCOUNT
HOLDERS. $$$

Australia has unveiled a tax levy on some bank
deposits. They wish to raise money towards
a fund designed to safeguard against
a banking collapse. Deposits up to A$250,000
will pay a levy of 0.05% in tax starting
January 2016. It will be imposed on
banks and not account holders. But banks
have warned costs may be passed on to
customers, as usual. The move comes
as the government warned of slower economic
growth and a much bigger budget deficit
than previously forecasted. Colleague
Craig McC of California added how the
disastrous policy which will have significant
blowback to the fiat system. Expect
later a response to additional hikes
of capital flight, increasing black
market activity, migration from fiat
paper money into precious metals, and
more. See the BBC article (CLICK HERE).
The Jackass take is to stress its small
size. At 0.05% (as in 1/20-th of 1%),
then it comes to $5 per $10,000 held
on deposit. The concept is bad and the
trend is rotten, but this tax is less
than miniscule. The monthly service
fee on a typical account is $10. Given
the trend begun, the door is opened
to future bank tax hikes every year.

◄$$$ THE KEYSTONE PIPELINE WILL BE BUILT. THE CANADIAN OFFICIALS ARE ISSUING
VEILED THREATS TO THE USGOVT OFFICIALDOM.
A RECENT TRAIN ACCIDENT WITH 72 CARS
FILLED WITH OIL BLEW UP AFTER BEING
DERAILED, KILLING 47 PEOPLE IN
QUEBEC.
THE ACCIDENT CLEANUP COSTS WILL BE CLOSE
TO $1 BILLION. LOOK FOR THE WHITE HOUSE
TO APPROVE THE KEYSTONE PIPELINE SOON,
UNLESS AMBASSADOR BUFFET BLOCKS THE
MOVE. $$$

On July 6th, a Montreal Maine & Atlantic train carrying 72 tank cars filled
with oil exploded after its brakes apparently
failed, sending it overturned railcars
into the small
Quebec town of
Lac-Megantic,
where it exploded. In the conflagration
that followed, an estimated 47 people
were killed. The rail freight for
crude oil has soared on Canadian railways
from 500 carloads of crude oil just
four years ago to 140,000 carloads annually
this year. That is a 280-fold rise.
The Canadian ambassador to the
US has warned President Obama if he does not approve
the controversial Keystone XL pipeline,
then he can expect similar oil trains
and tanker trucks to enter the
United States. The choices are train or pipeline,
a simple matter really. In the wake
of the Lac-Megantic tragedy, Greenpeace
Canada
recommended that the federal government
order an immediate ban on shipping oil
in the older type 111A tanker cars,
which the Canadian Transportation Safety
Board has identified as susceptible
to spills. The group also recommended
independent safety reviews to be conducted
of all means of hydrocarbon transportation.

The Transport Canada regulators issued a series of emergency orders, some of
which incorporate the Greenpeace Canada
suggestions. Effective immediately,
at least two crew members must work
trains that carry dangerous cargo. Also,
no locomotive attached to a tanker car
filled with dangerous materials can
be left unattended on a main track.
The safety record of Canadian railways
is actually improving on trend over
the years. The cost of the cleanup in
the
Quebec
town is estimated between $500 million
to $1 billion. In order to prevent such
a debacle in the
US,
Ambassador Doer believes that the Obama
Admin will approve Keystone XL. See
the Zero Hedge article (CLICK HERE).
The Keystone Pipeline delay is believed
to be motivated by profiteering from
the Warren Buffet railways, which carry
oil in the same manner as in
Canada.

◄$$$ BANK OF
ENGLAND REFUSED COMMENT ON
A HUGE DISCREPANCY IN CUSTODIAL GOLD
REPORTS. BANK OF ENGLAND MAY HAVE DIRECTED
RELEASE OF 1300 TONNES OF CENTRAL BANK
GOLD IN PRICE SUPPRESSION SCHEMES EARLIER
THIS YEAR. $$$

Based on recent data from the Bank of England, it appears the venerable bank
syndicate criminal fortress has permitted
the lease of 1300 tonnes of central
bank gold from their vaults. The drainage
took place during a four month period
from March through June. The conclusion
can be made by inference, based upon
the officially reported inventory level
at the end of February and the stated
inventory on the bank website at the
end of June. Alasdair Macleod of Gold
Money believes that the removal and
lease of gold bars from its custody
was done in support of the gold price
smackdown done this spring. The Bank
of England refuses to explain what appears
to be a huge discrepancy in its gold
accounting. They are actually accountable
to nobody. See the Cafe Americain article
by Jesse (CLICK HERE).
One can only wonder whose gold might
have been improperly used, possibly
the Queen's. Perhaps it was gold from
official accounts owned by
Portugal,
Spain,
or
Greece.
The irony is thick, as the gold ambushes
in April and June did not net much physical
gold bars as a result of margin calls.
If not absconded from European central
bank allocated gold accounts, then the
Queen is the loser from the ambushes.
No respect given by the Jackass to the
entire inbred royal family, replete
with pedofiles, idle rich, and twisted
genetic specimens.

◄$$$ NORTH AFRICAN INDUSTRIAL DEVELOPMENT HAS BEEN SABOTAGED AND SIDETRACKED
BY THE USGOVT TAMPERING.
TUNISIA WILL ERUPT SOON NEXT.
EUROPEAN FIRMS HAD GRAND PLANS TO EXPAND
AN INDUSTRIAL BASE TO
NORTH
AFRICA. THE ARAB SPRING INTERRUPTED
THE STRATEGY, ALL PLANS ARE ON HOLD.
THE USDOLLAR IS AT HIGH RISK TO BE DISCARDED
OF BY EUROPEAN INDUSTRIAL ELITE AND
THE SAUDI DISORDER. $$$

The following came from The Voice, who has an ear to the ground on numerous
venues, markets, and economic developments.
The
United
States had its
bizarre NAFTA for exploit of Mexican
labor at border factories in the 1990
decade.
Europe
has its plans for exploit of North African
cheap labor, but also vast minerals.
An ulterior motive was present for the
Arab Spring disruptions. Apart from
stealing Qaddafi's gold account held
in
London,
and the incendiary interference under
the banner of exporting democracy, another
motive was present, and still is at
work. The USGovt started the disorder
in
Northern Africa
in order to derail a European heavy
industry development master plan for
the Mediterranean basin. Chalk up
one more major area of anger and disgust
directed at the
US helm and syndicate crew, this from
Europe. The power elite in certain European countries, plus
Russia,
are extremely angry. The plan called
to set up heavy industries along the
coastline of the North African countries
bordering on to the
Mediterranean
Sea. They were to consist of steel plants,
chemical plants, huge LNG ports, and
petro-chemical plants (including refineries),
huge food processing plants, deep sea
ports, advanced rail facilities (roll
on, roll off), and cargo airports. The
goal was to utilize the ample African
natural resources and ample
Middle
East energy, in addition to cheap labor
and untapped minerals.

The expansive industrial complexes eventually will be built, and go under European
control. The US-based obstruction must
be cleared from the pathways. The planning
and construction timeframes would be
short. By comparison,
Europe
requires an average of 15 years to secure
all necessary permits for the construction
of large industrial manufacturing complexes.
The North African location has advantages
with the discounted natural resources
feedstock and cheap labor costs. The
proximity of those heavy industries
to the European mainland manufacturing
plants is ideal. This modernization
strategic plan and de-facto re-industrialization
of
Europe would
turn the continent into a powerhouse
with few rivals.Russia
and the
Black Sea
component is integral to the master
plan, begun from drawing board to hatching
since 2005.
Italy and
Greece,
as well as
Spain
and southern
France,
even the
Adriatic sea countries (Balkans), are all components of the strategic
plan. The above is part of the construction
of the Eurasian Trade Zone. The unilateral
drive to create democratic puppet nations
under USGovt control strings has interfered
with the reform of
Europe.
Important elite players are extremely
angry. Look for them to participate
in accelerated manner with the BRICS
Bank and the Gold Trade Settlement.
Their secondary motive will be to push
the
United States off the Western stage.

Word from The Voice, who has excellent British-Arab security connections, is
that the next blowout is coming in
Tunisia. Over a year ago,
the leader escaped with loot in the
form of gold bars to
Malta. The people are fed
up with the Muslim Brotherhood thugs,
an armed gang of violent incendiaries
who operate under USGovt funding. He
wrote, "I am afraid that the
entire Middle East and
Northern
Africa will soon be on fire, as will
be a number of Sub-Sahara countries.
Egypt is burning, soon to erupt in civil
war, and a full fledged civil war has
begun across
North
Africa. All North African countries
are going up in flames, if not already.
Such is the outcome of the Arab Spring
promoted by
Washington. Egypt being the most populous with
100 million people, is the most important
nation to watch, along with Saudi Arabia
on the backside of the Arab world, on
the corner of the
Persian
Gulf. The new leader from the military
coup, General Sisi is crushing the Muslim
Brotherhood right now. He has the Egyptian
people behind him.
Tunisia is a similar situation. The nation Lybia
is screwed up beyond anything that could
be described. The entire
Middle East will eventually be on fire. It is only a question of time."
The ultimate victim to the Arab Spring
could be the USDollar, from European
industrial elite vengeance, and from
the fall of the House of Saud.

##
COMEX SHELL GAMES TO AVERT FAILURE

◄$$$ GRANT WILLIAMS DESCRIBES THE SMOKING COMEX GUN. THE OFFICIAL GOLD
VAULTS ARE BEING DRAINED TO MANAGE THE
DEMANDS FROM ALL CORNERS OF THE WORLD.
THE GERMAN OFFICIAL REPATRIATION REQUEST
CHANGED EVERYTHING. $$$

An excellent review of the evidence was given to expose the banker cartel. Grant
Williams is thorough. The fractional
banking system also includes the gold
bullion bank system, as multiple claims
are made on the same bullion bars. Gold
is leased from the central banks, but
appears on both balance sheets of borrower
and leasing bank. That partly explains
the over 40,000 tons missing. Leased
gold is used for investing in yield
bearing instruments across the world
by financial firms. Many central banks
and bullion banks want their gold returned,
as suspicions have risen. In August
2011, Chavez of Venezuela demanded their
national 99 tons of gold returned from
the Bank of England.
Mexico caved in the year before, accepting gold
certificates. The Venezuelan gold was
delivered by November 2011, with a parade
in
Caracas
of armored cars. In the following
months, the gold price spiked to $1900
per ounce, believed to be a direct response
to the induced shortage from the sudden
demand for the repatriation.Ghana
and
Ecuador
followed suit with
Venezuela,
but the
Ghana leader was murdered.
To be sure,
Africa
has fewer spotlights.

The Bank of England and New York Fed used to serve as clearinghouse during the
past Gold Standard, often using mere
book entries to account for sales handled
within their walls, thus the storage
sites. In January 2013, the German Govt
demanded 350 tons to be repatriated
from
New York and
Paris, a small part of the total German gold reserves. The demand was
made only two months after a Bundesbank
official gave a speech of trust in
New
York, a bootlicking exercise to the
syndicate that did not go over well
back in
Germany. One month later,
the Germans repeated the formal request
for the repatration of their gold. The
helm in
New York
and
Paris responded by announcing that the gold would
be returned over a seven year period.
Then the
Mali war was mysteriously
launched, under false pretenses, with
volume exactly equal to the German demand
over the same seven years. Conclude
that
Germany
is more important than
Venezuela.

In the Gold market, stop losses had been set in huge volume at the $1600-1650
range of support. The banker cartel
eyed the target. Focus came to gold
Registered for Delivery, as gold shifted
in class from Eligible to Registered.
A GLD basket consists of 10,000 shares,
equal to 1000 oz, valued at $1.3 million.
It is a minimum requirement for redemption,
almost exclusively for the big US and
Anglo banks. A whopping 30% of GLD
gold held in inventory has been removed
by big investment houses in recent months.
Redemption is done through authorized
participants, a process blocked for
individuals. Some recent precedent has
been seen where individuals have been
denied delivery on their legally binding
contracts, even after satisfying the
rigorous requirements. The privilege
is only for big banks to harvest its
gold.

The GLD gold vault inventory has gone from 80-85 metric tons to about 20 tons
in recent months. The COMEX gold vault
inventory has gone from 1300 tons to
about 900 tons at the same time. However
in contrast, the SLV and COMEX silver
vault inventory has risen gradually.
The SLV silver inventory has risen from
740 tons to 1400 tons over the same
timespan. The COMEX silver inventory
has risen from 9750 tons to 10,500 tons
over that time. A major gold short squeeze
is in progress at the COMEX. Grant
Williams anticipates a vicious powerful
upward bounce in the Gold price. A mad
massive scramble in underway to return
gold to the Bundesbank. Many other
central bank allocated accounts must
also be returned. Factor in all the
bullion bank fraud and deceptions, and
therefore the Voice's claim that over
40,000 tons of allocated gold have been
misused begins to make sense. See the
YouTube video with host Michael Maloney
(CLICK HERE).

◄$$$ THE DANGEROUS RISE OF PAPER CLAIMS TO GOLD & SILVER, A HOUSE
OF CARDS CERTAIN TO FALL. THE OFFICIAL
COMEX VAULTS ARE FAST BEING DEPLETED.
A BIG EVENT IS NEAR. $$$

Again, Grant Williams of Vulpes Investment Mgmt puts a spotlight on the COMEX.
The demands are rising fast, while the
supplies are quickly vanishing. Usually
that means a major disruptive event
is on the horizon closeby. A picture
tells the story. Notice the registered
gold stocks at the COMEX, in a sudden
dangerous decline since the early months
of 2013. Notice the Open Interest (called
paper claims) which has tripled since
the beginning of 2013. A powerful run
on available gold inventory in underway,
well along, certain to create a major
event, possibly a default. See the
interview of Williams on King World
News entitled "Default Feared:
Gold and Silver Paper Claims Hit All-Time
Highs" (CLICK HERE).

◄$$$ THE COMING COMEX SHUTDOWN FROM FAILURE. USFED BOND PURCHASES WILL
CONTINUE, EVEN INCREASE. THE PRECIOUS
METALS PRICES ARE DUE FOR A REBOUND.
THE JUNIOR MINING FIRMS ARE SEEING MERGER
ACTIVITY, WHILE BANKS REQUIRE FORWARD
HEDGE SALES TO LOCK IN THE CHEAP METAL
PRICES. MAJOR PLAYERS ARE DEMANDING
DELIVERY OF GOLD, WHICH IS BREAKING
THE COMEX DOWN. ASIAN ENTITIES ARE SELLING
USDOLLARS IN FAVOR OF GOLD. A MAJOR
EVENT IS COMING, MAYBE MULTIPLE EVENTS,
THAT WILL TRIGGER A COMEX MARKET FAILURE,
AND A SUDDEN EXPLOSIVE RISE IN THE GOLD
& SILVER PRICES. $$$

Keith Barron made an interview where he touched on numerous important points.
The following are his thoughts put into
prose. After the Taper Talk at the USFed
has died down, the Gold & Silver
prices are rallying again. The reality
is that the stock and bond markets will
crater if the USFed remains steadfast
about tapering, in a fragile situation.
They cannot stop buying $85 billion
of USTreasurys every month. Not only
will the QE continue, but at some point
it will have to be augmented to handle
the extra supply brought forward.
Notice the non-existent response by
the USEconomy from the $trillions dumped.
At this point the central planners are
very afraid of things beginning to shift
toward deflation, recession, even depression.
Keep watching the junior mining firms,
which have seen a recent skein of merger
and acquisition activity, as juniors
are gobbling juniors. Barron expects
a big bounce in the sector after Labor
Day. The Gold & Silver prices are
not going to stay down for much longer.
Another phenomenon is being seen, the
revival of hedging. The investment bankers
are driving this switch toward hedging. The banks refuse to lend money out
unless the companies are committed to
hedge with collateralized forward sales.
The nasty rub is that these companies
are going to be selling their forward
production at dirt cheap prices.
They are certain to miss the massive
price advances in both the Gold &
Silver markets soon to arrive.

Very big upward movements in prices will come in Q3 and Q4 of this year. The
impetus will be some major event, like
a failure of a large European bank,
a default in sovereign bonds by one
of the PIIGS countries, a terrorist
attack, or some other natural disaster.
The trigger will ignite this imminent
move up, sure to involve substantial
repricing of both Gold & Silver. One possible trigger may turn out
to be a failure of the COMEX, whose
inventory is suffering from acute shortage
of physical gold, no longer available
for delivery. The gold bars are going
to
Asia in heavy volume. Notice the price action in the USDollar as
the Asians are dumping it in favor of
Gold. They are also paying a premium
to obtain physical gold in return for
no delay in shipment. The major participants
are showing a loss of faith in the paper
Gold & Silver markets, as if they
expect a COMEX failure. The inventory
abuses have spread to the aluminum market,
where Coors (the beer company) is struggling
to secure the metal to package their
product. Hence, focus has come to warehouse
practices, where Goldman Sachs is present
as the vampire squid in exploit.

Barron concluded, "I firmly believe there will be a point in the future
when this sort of event triggers a run
on the COMEX. More and more entities
are going to ask for physical delivery. This will have the effect of breaking
the COMEX and creating a failure.
When that takes place, you will see
an explosion in the prices of Gold &
Silver that will literally shock market
participants around the world."
See the two-part King World News interview
of Barron (CLICK HERE
and HERE).

◄$$$ THE GLD FUND IS COLLAPSING ITS SHARES. ITS GOLD BARS ARE BEING SHIPPED
DIRECTLY TO
ASIA IN HEAVY VOLUME. WORD HAS COME FROM AN SPDR GOLD TRUST LOGISTICS
OFFICER, DIRECTLY FROM THE INNER WORKINGS
OF THE GLD FUND. CONDITIONS FOR A MASSIVE
SHORT SQUEEZE AND SUDDEN UPWARD MOVE
IN THE OFFICIAL GOLD PRICE ARE NEAR.
$$$

Tekoa da Silva does great work at Bull Market Thinking, having relocated to
Brazil. The Jackass did several interviews with
him in 2010 and 2011. He had a unique
opportunity to talk to a source in the
bullion bank business, in particular
the logistics side. The insider deals
on a direct basis with the shipping
desks at the GLD fund, formally known
as the SPDR Gold Trust. He was surprisingly
liberal in sharing thoughts about the
operations, which can best be described
as devious and scummy. He has been watching
a primary GLD custodian, probably HSBC.
He commented on the high volumes in
movement to
Asia,
and the likelihood of a sudden rebound
in even the official gold price. He
said "GLD is collapsing in terms
of the number of share issuance, and
is being redeemed. We are hearing from
my end that the GLD main custodian
has been collapsing it and redeeming
it, and that Gold is just being shipped
via their shipping desk directly to
Asia. It is
quite clearly a major establishment
using their shipping desk to ship gold
bullion, and potentially having it re-smelted
down in Singapore, Hong Kong, etc. The
gold is moving. Anything that can go
down as hard as gold [price] has, can
obviously have a dramatic short squeeze
at some time. At the end of this
market, you will have a ridiculous squeeze."
The guest is referring to abuse of the
GLD fund inventory of gold bars being
sold in
Shanghai as part of the arbitrage described by
the Hat Trick Letter on a few occasions.

To be sure, if a highly publicized, highly disruptive, and highly profitable
upward move in the gold price was near
to reality, the current events of high
demand and vanishing supply would fit
perfectly in such a scenario. On the
accounting side, the COMEX Gold Warehouse
Stocks have declined by roughly 4.5
million ounces so far this year. In
dollar terms that comes to $5.89 billion
in gold that has fled COMEX depositories.
It is safe to assume, based upon the
GLD fund logistics inside word, that
a majority of the gold bars have found
their way to
China. See the Bull Market Thinking article (CLICK HERE).

◄$$$ ALASDAIR MACLEOD TALKED FREELY WITH MAX KEISER ABOUT THE GRADUAL
COMPLETE AND TOTAL BREAKDOWN OF THE
COMEX MARKET. THEIR INVENTORY IS GOING
EMPTY. DELIVERIES ARE NOT BEING MADE.
THE BULLION BANKS ARE UNDER PRESSURE
TO REPLENISH STOLEN ACCOUNTS. PREMIUMS
ARE PAID FOR GOLD IN
SHANGHAI.
THE GOLD PRICE IS BEING SUPPRESSED TO
SUPPORT THE VAPOROUS CORRUPTED CURRENCY
SYSTEM. $$$

Alasdair Macleod appeared on an interview with the colorful and irrepressible
Max Keiser to discuss the physical Gold
market. It seemed that Macleod is more
at liberty to discuss the intricate
and illicit occurrences than on his
own homesite at GoldMoney. He covered
many important areas. The following
are his thoughts and perceptions, but
my edits into prose. The Gold market
transfer system has turned unclear and
murky. Delivery from
Shanghai
has virtually ceased, with an end to
the physical market there. Movement
had been at 150 to 300 tons per month,
clearing in two directions. The
Hong Kong-based refabrication (recasting)
has also ceased. Delivery from the COMEX
is from an unknown origin. So suspect
great gimmicks, shady activity, and
nasty forcible actions. Even the COMEX
denies the validity of their own data,
which is unprecedented. We must conclude
that nothing is valid on data.

At the COMEX, the typical activity has for years seen over 95% of contract settlement
to be pushed into rollover for the next
month. The COMEX actually sees between
20 and 40 tons facing potential delivery
each month. No evidence suggests that
delivery takes place on a majority of
contracts. It is a paper factory.
Neither the COMEX nor Regulators are
clear. The bigger story is the SPDR
Gold Trust (aka GLD Fund). Its gold
inventory exits in large volumes, but
the destination is usually unknown.
The potential destinations are 1) Authorized
Participants, meaning big banks with
permission to do big raids of their
inventory through shorted GLD shares,
2) Bullion Gold Banks taking the bars
who urgently need them (like for replacing
misused allocated accounts, and 3) Investors
who do not believe in the Gold bull
market. The indications are that #1
and #2 are dominant, but not #3.

Premiums in the Gold price are seen in Hong Kong,
Shanghai,
and
Dubai, but they are no longer large like in late April. The
Shanghai
premium can be in the $40 to $50 range
per ounce, creating arbitrage potential
for profiteering. Regard the premium
as reflecting the higher risk of delivery
not to happen from other exchanges,
from growing distrust in the gold market.
Generally the Gold price is suppressed
to support the entire fiat paper currency
system. The Arab nations recycle their
oil surpluses, buying gold in large
quantities as a hedge against the USDollar
and USTBond risk. There is no better
hedge than Gold in protection against
currency debasement and monetary inflation.
The
US
population usually puts savings into
the stock market, with incentives to
do so. Easterners usually put savings
into Gold & Silver bars and coins.
See the interview video on 24HGold (CLICK HERE)
or see the Brother John article (CLICK HERE).

$$$ SILVER WILL VANISH IN OFFICIAL VAULTS NEXT. THE COMEX SILVER VAULTS HAVE
NOT BEEN REDUCED SHARPLY, LIKE THOSE
OF GOLD. EXPECT THE SILVER VAULTS TO
BE DEPLETED VERY SOON, SINCE DEMAND
IS HIGH AND THE ASIANS (
CHINA
&
SINGAPORE)
REGARD SILVER AS THE NEW GOLD. $$$

The process of emptying the COMEX silver vaults could be next on the agenda.
The underlying dynamics for Gold &
Silver are almost identical, both being
monetary metals. The Gold vaults have
suffered severe depletion, hardly a
mere Exchange Traded Fund reallocation,
a moronic reason often given. Chinese
destinations, and
Singapore too, have been the
recipients of much gold heading eastward.
The phenomenon seen with Gold has yet
to occur with Silver, at least not yet. Forces are in place to push the Silver
bars eastward very soon, due to availability
and gold tax levies. Bloomberg has
been reporting a huge silver demand
from the plebeians of
Asia,
who regard silver as the new cheaper
gold. The vault demands of
Singapore, and the Chinese precious metal warehousing
ambitions will work to pull silver like
a grand magnet. See the Zero Hedge article
(CLICK HERE).

◄$$$ JPMORGUEN REFUSES TO DELIVERY AUGUST GOLD. INSTEAD, THE MAJORITY
GOES INTO THE JPMORGUEN WHORE ACCOUNTS.
THE PATTERN SHOWN FIRST IN JULY CONTINUES.
ON SOME DAYS, NO CONTRACTS ARE DELIVERED
UPON, ALL GOING TO THE BIG BANKS IN
REPLENISHMENT. $$$

An early August snapshot revealed that JPMorguen continues to hog the available
supply released from the COMEX. Witness
blatant contract fraud and illicit dominance
in the Gold market. The pattern that
started in June continues two months
later. JPMorguen is hoarding the gold
that exits from the ramps for a simple
reason. The big bank has none and cannot
meet contract delivery requirements. On August 7th, a total of 245 delivery
notices were issued for August gold
contracts. Of the total, a ripe 233
deliveries were stopped by JPM, all
of them directed into the JPM house
account. The other 12 went into the
customer accounts of Barclays, ABN Amro,
and Merrill Lynch. This is basic
contract fraud, opening the door for
lawsuits, if not legal prosecution.
None were given to clients holding valid
contracts. On the five active days of
August cumulatively, data month-to-date
showed 2515 deliveries for August had
been completed. Of the total, a ripe
1963 deliveries (78%) have gone to JPM.
Specifically, 1730 deliveries (68.8%)
from that entire batch have flown directly
into the JPM house account. The fraud
and violations are blatant and in the
open. Of course, the big broken corrupt
bank would claim that they reserve the
right under certain conditions to do
exactly that, written in the fine print
of the contract. Let that defense be
heard in court.

◄$$$ JPMORGUEN IS SERIOUSLY FORAGING FOR GOLD FROM ITS OWN ILK. THE BIG
BANK APPEARS TO BE TAPPING BOTH
SCOTIA MOCATTA AND HSBC FOR GOLD BARS. THE TWO SQUIRES EVEN SWAP GOLD
BETWEEN THEMSELVES, DUTIFUL TO SERVE
THE JPMORGUE GODFATHER. THESE BANKS
HAVE EVEN APPEARED AT THE THE SPROTT
GOLD TRUST WINDOW FOR GOLD BARS. THE
SEARCH FOR GOLD SUPPLY HAS TURNED CRITICAL
FOR THE BIG BANK. THE SHORTAGE IS BEYOND
ACUTE. THE TERM GOLDEN MUSICAL CHAIRS
COMES TO MIND. $$$

On back-to-back days in early August, the JPMorguen monster saw fit to knock
on the door of two major players in
the bullion bank business. Both coughed
up significant amounts of gold bars,
on bended knee. On August 6th the target
was HSBC, and on August 7th the target
was Scotia Mocatta. They must regard
the demand as a polite gold procurement
request, which if refused, would leave
them subject to serious vengeance of
violence, like a fire or a murder, maybe
just damaging losses, or pulled credit
lines. Lehman Brothers is still remembered
as the targeted killjob. Note that Scotia
Mocatta is the second fullest
New
York commercial gold vault, sure to
be tapped again and again. The JPM gold
vault dropped to another record low
of only 380,000 ounces, pressing them
into action. The monster must feed.
They appealed directly to the COMEX
members. Before long, the victims will
not answer the call. They will soon
have no more unencumbered gold to share.

The JPMorguen monster is moving down the list in orderly fashion. After hitting
HSBC for 6445 ounces (6.45 metric tons)
on one day, they hit Scotia Mocatta
for 20,189 ounces (20.2 metric tons)
the next day. The HSBC release came
from eligible inventory, whereas the
Scotia release came from registered gold held in inventory. The lateral
movement of gold is without precedent
between two vaults of major participants,
without a customary intermediate warrant
detachment step. It indicates extreme
conditions, and imminent default without
action and movement. Furthermore, HSBC
shifted 43.4 metric tons from Registered
to Eligible, making room for further
gold requests by JPM, more withdrawals
under pressure. The JPMorguen requests
are direct solicitations, the result
of the big broken bank running around
town begging for gold with a tin cup
in hand. See the Zero Hedge articles
(CLICK HERE
and HERE
and HERE).
Big kudos to Tyler Durden and his intrepid
cohorts. They must have very formidable
firewalls to avoid unwanted virus attacks. The two charts are Smoking Guns of
vault depletion at the COMEX, when the
musical chairs are moving!!

The JPMorguen overlord cannot be refused, as gold is sourced, only to be shipped
out rapidly. The players are locked
in a golden musical chairs game that
awaits the end of the music, when they
have no more gold to seize, steal, or
rehypothecate. To provide the squire
service to JPM, the custodians at HSBC
had to concurrently obtain a comparable
infusion of gold from
Scotia
Mocatta, acting in dutiful service to
the great morgue. All three major
vaults proceeded to convert tens of
thousands of ounces in and out of registered
in a totally uncoordinated fashion.
The conversion is seen in the tally
at the bottom of the next chart. The
intravault activity is very clearly
shown above. The scramble resembles
muscial chairs, to source the gold,
to avoid a default, to keep the fiat
currency charade going. The bankers
are running out of time, and music.
Their credibility is long gone. Even
the mainstream news is beginning to
comprehend the fraudulent game in support
of the entire monetary system.

As footnote, Jesse at the Cafe Americain also noticed drainage out of PHYS,
the Sprott Gold Trust. Drainage out
of PHYS is a real sign of shortages.
Eric Sprott has a very good vantage
point from his office, to notice who
makes the demands, and where the physical
is moving to.

$$$ JPMORGUEN IS SELLING ITS GOLD VAULT AT 1 CHASE
MANHATTAN
PLAZA. RUMORS SWIRL AS TO THEIR EXIT
OR WHETHER THE VAULT IS EMPTY. THE BANK
EXECUTIVE CREW MIGHT SENSE A MASSIVE
GOLD MARKET RALLY COMING, IF THEY ARE
SMART. $$$

The property is known as 1CMP, as in 1 Chase
Manhattan
Plaza. With the JPMorguen gold inventory
at the COMEX plunging to record lows,
it could be that CEO Dimon has no usage
or need for an empty gold vault. Bloomberg
reports that JPM is seeking to sell
its entire 1CMP tower. Maybe the sale
proceeds will help to plug some derivative
losses. As part of the property, the
world's largest commercial gold vault
is housed five stories below street
level. Keep in mind some intriguing
and credible reports, like from Ted
Butler, which claim that JPMorguen has
cornered the gold market on the futures
contract arena to the long side.
Perhaps the observers, the mere mortals
among us, that the 1CMP sale could indicate
that Blythe Masters and Jamie Dimon
can smell a powerful Gold market bull
market resumption, as in a manic third
phase. Maybe they have decided to abandon
the short manipulation game while they
can. See the Silver Doctors article
(CLICK HERE).

◄$$$ OBSERVE THE INCREDIBLE SHRINKING COMEX GOLD WAREHOUSE INVENTORIES.
WHAT KEEPS THE BANKER GAME GOING ON
THE PHONY MONETARY SYSTEM WITH TOXIC
PAPER BACKING AND A VAPOROUS FOUNDATION
IN DERIVATIVES IS PHYSICAL GOLD BULLION,
THE BARS IN BANKS. THEY ARE RUNNING
OUT OF GOLD METAL QUICKLY. ANOTHER FEW
MONTHS AT THIS PACE, AND GAME OVER.
$$$

Since the end of April this year, the Registered gold held at the COMEX depositories
has collapsed from a total of 2,147,398
ounces to just 852,930 ounces on August
13th. That is a collapse of 60% of the
Registered gold. Such a pace is not
sustainable. A straight line extrapolation
of this rapid depletion would indicate
a total COMEX depletion (empty vaults)
in 2.33 more months. From May 1st to
mid-August is 3.5 months, with 60% depletion.
So another two thirds multiple to go
in elapsed time period, equaling 2.33
more months remaining before full Gold
depletion, leaving the world at a drop
dead timeframe of the last week of October. D-Day for Gold is the end of October!!

The entire COMEX vault system is giving a top view scrutiny like a prosecutor
seeking an indictment by SmartKnowledgeU
on the Zero Hedge weblogs. Much excellent
information can be plucked from such
weblogs. The Silver inventory is not
similar at all. He wrote, "JPMorgan's
Registered silver holdings, just
since late April, have been drained
from 17,848,170 ounces to 9,940,577
ounces, a massive 44% loss, while
their eligible silver has increased
a massive 61% from 18,094,433 ounces
to 29,065,774 ounces. JPMorgan, during
this raid, has conscientiously converted
millions of Registered silver ounces
into Eligible silver ounces. Why would
they do this? While there may certainly
be more complex answers to this question
that what meets the eye, a simple answer
would be that JPMorgan wishes to
cut their inventory of silver available
for delivery and is limiting their exposure
to losses of silver inventory after
losing so much of their gold inventory."
See the Zero Hedge article by SmartKnowledgeU
as guest (CLICK HERE).

Make an assumption that no more Registered Silver enters into the COMEX system.
Over a 3.5 month period, the Registered
Silver at JPMorguen vaults has fallen
by 44%. So another 1.27 multiple to
go in elapsed time period, equaling
4.45 more months remaining before full
Registered silver depletion. The world
should see a drop dead timeframe on
supply chain for silver by the end of
December. D-Day for Silver in
supply chain is the end of December!!

◄$$$ A DERIVATIVES ACCIDENT IS AT THE DOORSTEP. THE WHITE HOUSE MET WITH
FINANCIAL REGULATORS IN AN EMERGENCY
MEETING. THE RUMBLING HEARD IS THE ENTIRE
STAGE FALLING. A 110 BASIS POINT MOVE
UP IN THE LONG-TERM BOND YIELD WILL
CAUSE EXTREME DAMAGE SOON, IF NOT ALREADY.
$$$

An interest rate derivatives explosion might be imminent, according to John
Embry of Sprott Asset Mgmt. An emergency
meeting took place on Tuesday August
20th with key bankers and officials
of major USGovt financial regulatory
agencies. The topic is a guarded secret,
not fit for the unwashed people or mere
mortals. The topic is suspected to be
the rising danger of an explosion of
derivatives (in particular of interest
rates) as the officials lose control
of the bond market. Since early May,
the 10-year USTreasury yield has risen
110 basis points, a sufficient amount
to cause considerable destruction of
entire structural edifices. Apparently
the Taper Talk by the unqualified economist
sitting as USFed Chairman caused a series
of dominos to fall. The foreign dumping
of USTreasury Bonds is accompanied by
bond funds like PIMCO and big US banks
selling USTBonds en masse also. The
hidden risk is the big
US banks reversing their carry trade, unwinding
the highly leveraged USTBond futures
contracts and introducing high risk
convexity into the cauldron. A major
bank loss event is near. See the King
World News interview (CLICK HERE).

◄$$$ A VETERAN GOLD TRADER IS STILL WAITING FOR THE GOLD ON A CONTRACT,
AFTER EIGHT WEEKS. SUCH LONG DELAYS
HAVE BECOME THE NORM. THE COMEX VAULTS
CANNOT SUPPORT THE DELIVERY REQUIREMENTS.
THE END OF THE GAME IS NEAR. $$$

Bloomberg News actually permitted a televised interview of Mihir Dange, co-founder
of commodity trading firm Grafite Capital.
He told his story, how his company bought
physical gold eight weeks ago at the
COMEX with a formal gold contract. However,
no delivery has come yet. Dange claimed
there is a huge run on physical gold
within the bullion market. That is a
reality and an understatement. He discussed
the backwardation concept, the inversion
whereby current spot Gold has a higher
price than the future price. Besides
the alarming detail of long delays,
it is remarkable that the financial
news network would feature such an embarrassing
story. In their own wallowing ignorance,
they probably are not aware that they
are describing a COMEX defaulting market
in progress. See the Bloomberg interview
(CLICK HERE).

◄$$$ LONG DELAYS AT THE COMEX FOR GOLD DELIVERY HAS BECOME THE NEW
NORMAL.
PLAYERS ARE REMOVING THEIR BARS AT THE
COMPANY LEVEL AND INDIVIDUAL LEVEL.
$$$

George of Chicago, my COMEX logistics source, shared a perspective from a man
he has known for 20 years, a trusted
colleague. He passed word on JPMorguen
practices before any GATA publicity
on long delays. He is in a position
to absolutely know the inner workings
of COMEX, since he is a cog in the logistics
system. He said the following one week
ago. JPMorguen is hogging shipments
of between 95% and 99% of the last batch
of gold deliveries. The total volume
is well over 2000 bars. Some parties
have not requested the physical delivery
in removal, but they have specifically
identified bars, which of course should
be there. They are turning suspicious
about whether their gold bars are still
in the vaults. The man has a few gold
bars left there in the official vaults
that he intends to pull out. He must
return to
Chicago
to retrieve them, but do so anonymously.
He does not wish to have a visit by
Brinks at his home. The insider guy
has been involved in logistics, watching
the operations for over 30 years, working
for several big professional clearing
firms. He knows what is happening, and
has seen it all.

The Voice pitched in regarding the long waits for gold delivery from COMEX.
He wrote, "They can wait until
the cows come home for their delivery.
There is such chaos now within the system
that all will be blown wide open not
before long. There is so much that is
incredibly strange, broken, and corrupted
going on that no one will take notice.
Once the masses try to reach for the
lifeboats, they will find out there
is no room for them. Reality will soon
finally catch up with them."
The lifeboats are Gold & Silver
bars and coins in your own personal
possession.

## SERIOUS DISTRESS AT MINING FIRMS

◄$$$ FIRST MAJESTIC HELD BACK 700,000 OZ IN SECOND QUARTER SILVER SALES
DIRECTLY FROM MINE OUTPUT, CITING LOW
PRICES. THE STRIKE AGAINST COMEX HAS
BEGUN (NOT REALLY, JUST WISHFUL THINKING).
OTHER MINING FIRMS MIGHT FOLLOW. THE
KEY SILVER PRODUCER HAS FOREGONE ALMOST
ALL PROFIT FOR THE QUARTER. FIRST MAJESTIC
MIGHT BECOME THE LEADER OF A RESISTANCE
MOVEMENT AGAINST THE COMEX. $$$

The decision to suspend the sale of 700,000 ounces of silver in the second quarter
because of low silver prices was the
main factor behind the plunge in net
income at First Majestic Silver. It
was registered at $200,000 in Q2, down
by 99% in total. The operations are
strong, however. Their silver production
and silver equivalent production soared
by 44% (at 2,767,966 oz) and 55% (at
2,102,222 oz) respectively, during the
quarter. Equivalent is for byproduct
like lead, zinc, iron, converted on
value basis. They exceeded production
of 3.2 million ounces of silver equivalent,
which is a major milestone. The silver
price fell 31% during Q2, the largest
quarterly drop since the 2008 financial
crisis. First Majestic Silver CEO Keith
Neumeyer stated, "As such management
decided to suspend a portion of silver
sales to await a rebound in prices.
While the suspension had a negative
impact on this quarter's revenue and
earnings, we are confident that the
silver price will revert back to the
mean in the near future. In the meantime,
regular sales are not taking place in
order to allow silver inventories to
return to normal levels."

Neumeyer gave emphasis to the fact that the company did not make a single sale
under $22.80 (silver price) in Q2 from
dorey bar form. He anticipates the
decision to hold back those 700,000
silver ounces will result in a couple
$million extra in Q3 profit. Continued
growth over the next couple of quarters
is expected with the Del Toro project
kicking into gear and the expansion
at San Martin coming almost complete.
Full year cash costs are expected to
be consistent with guidance of $8.56
to $9.15/oz. So even with suppressed
silver price, the profit margin is over
50%. From May to June of this year,
the company committed to reduce spending
in exploration, development, plant &
equipment by $50 million, postponing
investments in non-critical areas that
will not impact production guidance.
See the Mining Web article (CLICK HERE).

The company is a trend setter. Not long ago, they advised every silver mining
company to hold a portion of their ongoing
free cash flow in silver bullion form.
They have shot the first cannon ball
across the JPMorguen bow, waiting for
their price management scheme (market
fraud) to be finally broken. Analysts
believe that if the ten largest silver
producers followed the First Majestic
defiant pattern, the silver suppression
game would be quickly ended. They could
later sell their withheld silver bars
into the market at a price multiples
higher. The reality in the mining
sector is that most large producers
of silver and gold are strongly aligned
with the dark side of the financial
elite, the worst being Barrick.
Watch the trend with other defiant producers.
The pressure to sell at fair price,
to capitalize properly on investment,
and to deliver to shareholders will
grow more severe and intense. Imagine
mining firms vaulting their gold &
silver, then take loans against them
to pay for the bills tied to operations.
They could line up future deals in mine
output with sales in high volume like
to the Chinese & Russians. The opposition
to COMEX criminality is only beginning.

◄$$$ TOP 10 GOLD MINERS REPORTED CASH COSTS, THE NEWS NOT BEING GOOD.
THE OLD METHODS WOULD INDICATE PROFITABLE
MINING FIRMS. THE REALITY HAS COME HOME
TO ROOST. THE 2013 PROFIT FIGURES ARE
HORRENDOUS. THE PROPER ACCOUNTING METHODS
ARE BECOMING NORMAL AND ACCEPTED. $$$

The full absurdity of cash cost reporting for gold miners has come to attention.
On a cash costs basis, most significant
gold miners would appear to be profitable.
Reality indicates otherwise. The latest
quarterly and half yearly profit figures
coming out of the gold mining sector
are almost without exception dreadful.
The gold stock investors have misunderstood
the actual profit implications of the
cash cost figures disseminated by most
mining companies in the past. It has
bordered on accounting fraud, far worse
than innocent omissions. The mining
sector has not properly accounted for
myriad other costs, royalties, taxes,
and overheads incurred. Typically the
all-in costs are at least double the
cash cost figures cited. Even the
World Gold Council has blessed the all-in
methods as a sensible way of reporting.
Other challenges exist, like the depleting
nature of gold mines. They have finite
lifespans, and usually ore grades decline
along with concentrate volume. The norm
is diminishing metal output unless capital
is spent on plant expansions, exploration,
or the building of completely new mines
to come onstream as production falls
away at the older mines. Such expenditures
are usually capitalized in the accounts,
but not to impact the reported mine
operating profits. The impact is a significant
factor on a company's overall earnings
and its ability to pay dividends.

Former Mineweb colleague Barry Sergeant campaigned vigorously on the journal's
publications with regard to mining sector
accounting methods. He urged them to
post some form of all-in costs figures.
He called it free cash flow. He was
made decidedly unpopular with some of
the mining companies at the time. To
their credit,
South Africa's Gold Fields
and a few other firms were already reporting
in this manner. Sergeant concluded
that although many gold miners had negative
free cash flow, they were able to report
net profits and pay dividends since
the gold price was in a rising trend.
That has changed, even if the mechanism
for pricing is corrupted. Nowadays,
the profit reporting anomalies have
become much more apparent. The fallout
will mean the eventual development of
a much leaner and meaner gold mining
sector, although it will indeed take
time for the heavy capital and operating
costs controls to filter through to
the bottom line. See the Mining Web
journal article (CLICK HERE).
Also see a good cash cost analysis of
the gold miners in the Rik Green Investor
Forum (CLICK HERE).

◄$$$ SUMMARY OF LOSSES AND OUTPUT IS REVEALING AMONG THE MINING FIRMS.
THE OFFICIAL GOLD PRICE WAS DOWN, AGGRAVATED
BY RISING COSTS. THE NIGHTMARE CONTINUES
UNTIL THE COMEX IS SHUT DOWN. OUTPUT
AT THE LARGE MINING FIRMS FOR GOLD ROSE,
BUT PROFITS ARE DOWN, SOME WAY DOWN.
$$$

The mining sector spent $1072 per ounce of gold sold
in 2Q2013, compared to $970 in 2Q2012, according to data collected by Mining.com
sources. Writedowns formed a parade
of red ink. The sector has been hit
by falling metals prices. The behemoth
BHP Billiton posted a 30% decline in
full-year profits. Kinross took a $2.29
billion writedown. Goldcorp took a $1.9
billion impairment. Newmont posted a
$2.2 billion writedown. Glencore Xstrata
took a $7.7 billion writedown, whose
revenues in the first half of 2013 fell
2% to $121.4 billion. Many were anticipated
writeoffs. However, these miners had
the following profit declines, seen
in Q2 comparisons. On an adjusted income
basis, Kinross went from $156 million
in 2Q2012 to $119 million in 2Q2013.
GoldCorp went from $332 million to $117
million. Newmont went from $294 million
to minus $50 million. First Majestic
went to nothing in profit in a seller's
strike, but their profit is held in
highly valued silver bars.

The output in gold ounces is a different story, still on the rise with expanding
production under challenging circumstances
for the first six months of the year.
The Kinross data is for gold equivalent,
factoring in byproduct metals produced.
Here is the gold production data from
these three big leading firms. Kinross
output from 1,266,081 in 1H2012 to 1,317,246
in 1H2013, a nice rise. GoldCorp output
went from 1,103,300 to 1,260,600. Newmont
output went from 2,489,000 to 2,333,000.
Collectively, these three firms realized
a 1.08% increase. The rise is a surprise
to the Jackass, as my expectation was
for a notable decline in response to
project shutdowns. Newmont had lower
gold production due to two if its mines
shutting down for a period in the quarter.
As footnote, gold mine output in
South
Africa is down
14% year to date through June.

If prices remain low, or do not recover substantially, then expect to see lower
gold production by next year. Friend
and colleague SRSrocco added a note.
He wrote in an email, "Lastly,
many of the miners (as you probably
already know) held back from selling
their metal after the April 12th takedown
in hopes for higher prices at the end
of the quarter. But, the gold price
was taken down again in June. So many
were forced to sell at even lower prices
than they could have three months before.
Anyhow, I still think what is going
on is appalling, but I do have a feeling
that gold price will turn around here
and we may not see lower gold production
until a few years, when peak energy
really starts to show its ugly head."

Silver miner Fresnillo, the world's largest silver producer by output, continues
to feel the impact of declining prices
and higher costs. It was forced to cut
operating spending and delay some capital
investment, after net income dropped
over 60% in the first half of the year.

◄$$$ MINING PROJECTS ARE BEING SHELVED IN
MEXICO,
40% MORE THAN LAST YEAR. FULLY $8 BILLION
IN EXPLORATION AND CAPITAL INVESTMENT
ARE AT RISK OF DELAY OR CUTS. COSTS
ARE RISING IN THE FALLING GOLD PRICE
ENVIRONMENT. PRODUCTION OUTPUT AT THE
LARGE MINING FIRMS REMAINS RELATIVELY
STEADY. $$$

Mexico is in disarray. The nation ranks
fifth globally in terms of mining investment
and fourth in exploration spending.
Although the Mexican Govt charges no
royalty on mining production or profits,
the firms pay fees based on the number
of hectares covered by mining concessions,
in addition to paying a flat 30% income
tax. One hectare (100 meters by 100
meters) is equivalent to 2.47 acres.
Their mining sector employs 334 thousand
people, with two million more employed
indirectly. The mining sector is dominant,
its fourth largest industry in income,
behind cars, oil, and electronics.

A total of 69 mining projects in Mexico have been suspended
so far in 2013, a ripe 40% more than
a year ago, due to falling commodity
prices and increased local opposition.
According to El Financiero, an additional
$8 billion in exploration and production
investment expected for this year is
at risk. That is a huge amount of money for the Mexican Economy not to see arrive, a
certain impact. Among the suspended
projects are the Pericones and Setago
projects by Canadian Kimber Resources.
They halted explorations despite obtaining
positive results that demonstrate important
presence of gold and silver veins. Another
suspended project is Caballo Blanco
by Goldgroup. It is a wholly owned advanced
stage flagship gold project, with an
estimated investment of $400 million.
Unchanged and on track is the extension
of Buenavista mine by Grupo
Mexico, with an investment of $1.4 billion, as
well as their Angangeo project, which
was allocated $131 million for the year.
See the Mining web article (CLICK HERE).

◄$$$
ZIMBABWE PLANS TO SEIZE MINES
WHILE COMPENSATING ONLY THE DOMESTIC
BANKS. THE MINES WILL SUFFER MAJOR CONFISCATION
LOSSES. WITNESS MORE GLOBAL SOCIALISM,
OR RISING AFRICAN FASCISM. $$$

The Mugabe regime plans to seize control of foreign owned
mines without paying for them as part
of a program to accumulate $7 billion
of assets. The program compels foreign
companies to cede 51% of their assets
to black investors or to the government. The decision follows his July 31st
election victory. The government will
compensate bank owners as it takes control
of their companies. In defiance, his
minister (a thug named Saviour) stated
that
Zimbabwe will not pay for its natural resources.
It will just take them. Non-compliant
mine owners risk losing their licenses.
Anglo American Platinum (AMS), Impala
Platinum Holdings (IMP), Barclays (BARC),
and Standard Chartered (STAN) are among
companies that operate in the country.
Other industries could be required to
yield smaller stakes to black owners.
Metals and minerals, including platinum
and gold, accounted for 71% of exports
in the first four months of this year,
equal to $719.9 million. The nitwit
leaders will see a fantastic decline
in export surplus. See the Bloomberg
article (CLICK HERE).
It is hard to call the
Zimbabwe
leader marxists, when they are more
like the inept clown thugs running around
South Africa, committing genocide
when it suits them. More like socialist
criminals, basic closet fascists. The
Mugabe regime has the squeamish support
of the USGovt.

##
EXPLOSIVE GOLD & SILVER DEMAND

◄$$$ FAST RISING GLOBAL GOLD DEMAND IN THE Q2 OF 2013 CONTINUES, AS THE
RESPONSE TO THE ILLICIT PRICE DECLINES
REMAIN AT WORK. THE GAINS CAME FOR BARS
& COINS, FOR JEWELRY, AND FOR CENTRAL
BANKS IN A BROAD-BASED RISE. THE BIG
FACTOR IN THE PUSH REMAINS
CHINA &
INDIA. $$$

Global demand continues to be fierce and broad and strong. Consumer demand
for gold rose 53% in Q2 of 2013, led
by strong growth in
China
and
India.
The results are from the latest World
Gold Council Gold Demand Trends report.
They highlight the response from recent
declines in the gold price, continuing
to generate significant increases in
demand. The biggest markets for gold
remain as Chindia (
China
&
India). On a global basis, jewelry demand
was up 37% in Q2 of 2013 to 576 tons,
from 421 tons in the same quarter last
year. It has reached the highest level
since Q3 of 2008. In
China,
demand was up 54% compared to a year
ago. In
India demand was up by 51%. Other significant
increases in demand for gold jewelry
were seen in other parts of the world.
The Middle East region was up by 33%,
and in
Turkey demand grew by 38%.

Bar & coin investment grew by 78% globally in Q2, compared to the same quarter last year. In fact, bar & coin demand surpassed
the 500 metric ton level in a single
quarter for the first time. The lead
factor was again the Chindia duo. In
China,
demand for gold bars and coins surged
157% in Q2, versus the same quarter
last year, while in
India it jumped 116% on the
quarter to a record 122 tons. Tallying
jewelry demand and bar & coin investment
together, global consumer demand totalled
1083 tons in the quarter, 53% higher
than a year ago. Given that growth
was strong last year, the results are
astonishing and serve as testament to
a stern response to the illicit price
declines. The official segment also
registered demand increases. For the
tenth consecutive quarter, central banks
were net buyers of gold, purchasing
71 tons, a robust reinforcement of the
trend that began in Q1 of 2011. Demand
in the technology sector was stable
once again, totalling 104 tons, a rise
of just 1% on last year. See the Gold
Org website article (CLICK HERE).

◄$$$ RECORD SILVER COIN SALES AT THE USMINT AGAIN, LIKE AN OLD SAW. THE
FIRST SEVEN MONTHS TOTALED ALMOST 30
MILLION OZ IN DEMAND. THE ENTIRE INDUSTRIAL
DEMAND FOR THE UNITED STATES IS IN DEFICIT,
DITTO IN
CANADA.
$$$

Rack up yet another record breaking month for the sale of US Silver Eagles.
The USMint finally updated the July
data. The total was 4.406 million ounces,
which does not include three active
days of July 29-31. They will be tallied
into August. The year-to-date total
of Silver Eagle sales is on course to
make another record of 29.45 million
ounces. See the USMint website (CLICK HERE).
To be sure, the lower price (even if
rigged) has resulted in a surge in demand
response, as it should be. In fact,
retail physical silver sales records
are being shattered all around the world.
It bears repeating. The USMint silver
coin sales plus the Royal Canadian Mint
silver coin sales in year 2013 are projected
to be a robust 25 million ounces over
and beyond the combined national mine
output for silver for the two countries. Silver coin demand for the
US
and
Canada will be more than 25
moz greater than their total combined
mine output. The entire industrial
demand for the two nations is in deficit.
What a truly remarkable data point!
The weak price addresses indescribable
corruption and complete breakdown. The
last laugh will be with the silver investors,
who someday in the not too distant future
will revel at the $80/oz price, and
spit in the COMEX eye.

◄$$$
CHINA &
JAPAN WILL CONSUME AN ESTIMATED 91 MILLION OZ
SILVER IN THE BURGEONING PHOTOVOLTAIC
INDUSTRY OVER THE NEXT THREE YEARS.
THE GREEN MOVEMENT CONTINUES. THE TOTAL
NEED IS 11% OF GLOBAL MINE OUPUT, JUST
FOR SOLAR IN THE TWO COUNTRIES IN THE
NEXT THREE YEARS. $$$

With 5.3 gigawatts of new capacity going online in
Japan
in 2013 and up to 30 gigawatts added
in
China
over the next three years, the solar
industry could potentially have a big
impact in the Silver market. Silver
is a key component in solar panels,
due to its unique electrical conductive
properties. According to the Silver
Institute, one megawatt of solar power
requires around 2.8 million ounces of
silver in physical devices. The solar
projects in
China
and
Japan
will combine to add 27 gigawatts over
the next three years. This capacity
will require approximately 91 million
ounces of silver. Translate into global
silver mine output, to conclude that
China and Japan's marginal demand from
solar sources alone could consume up
to 11% of global silver mine supply.
It is not assured that the world will
be able to produce as much silver as
it did in 2012. It is even less clear
that silver will be diverted to the
solar industry from investor demand.
Recall also that
Japan
is frantic to construct more electrical
capacity, in order to replace the
Fukushima plants. Over on the subcontinent of
India,
brisk demand is a dominant element in
the global silver demand. Across the
South China Sea, the
Hong
Kong window is hogging a big slice of
the global mine output for gold.

◄$$$
CHINA'S GOLD IMPORTS FROM
HONG KONG DECLINED AS DEMAND SLOWED.
BUT A WHOPPING 101 METRIC TONS IN JUNE
GOLD DEMAND IS NO SLOUCH PURCHASE. TO
BE SURE,
HONG KONG
ADDS TO THE EXTREME SHORTAGE IN SUPPLY.
TITLES ON STORIES CAN BE DECEPTIVE.
HONG KONG HAS KEPT
THE PRESSURE ON. $$$

Mainland
China purchased
101 metric tons from the Hong Kong window
in June, on a net basis (after deducting
flows from
China
into
Hong Kong).
Although the headline story is a 4.8%
decline on a monthly basis, the demand
is brisk and strong. The rules on financed
deals have changed, no longer permitting
gold usage. Again, although demand was
down for the month, in May the net
demand was 106 tons, a huge amount.
Therefore the press has taken a negative
tilt to another strong month at the
HK window. A big factor was inbound
shipments including scrap, which totaled
113 tons, down from 127 tons in May.
The gold market in
China is on fire really. Last
full year 2012, the Shanghai Gold Exchange
delivered 1139 tons of gold bullion.
For the first six months through June,
the same exchange delivered 1098 tons
to buyers. As point of reference, the
entire annual Chinese gold mine output
is only 403 tons. The Middle Kingdom
is a gigantic net importer of gold.

The same bias is evident in the story told, declaring lost faith in gold amid
speculation the US Federal Reserve will
curb debt buying. Both parts of that
interpretation are incorrect. The faith
in gold is firm, as sovereign debt crumbles
and government deficits remain elevated
unaddressed, except by a dangerous printing
press. The USFed talked about reducing
their bond purchase, but they will amplify
it in coming months. The stranger part
of the equation was the rule change
on deal settlement. Gold has been a
key method used in the commodity finance
trade. It served as a popular way of
taking advantage of the higher interest
rates on the mainland. Some traders
had been using gold to back foreign
currency loans from the
Hong
Kong banks, then taking in repatriated
cash to the mainland. It was finally
converted it into Yuan currency, before
the crackdown reduced the practice trade.
Hence a back door closed to acquire
gold through
Hong
Kong, disrupting the HKDollar stability.
See the Bloomberg biased article (CLICK HERE).

◄$$$
INDIA'S SILVER IMPORTS EXPLODED
DURING THE FIRST HALF OF 2013. THE TALLY
IS IN. MUCH ATTENTION HAS BEEN GIVEN
GOLD DEMAND IN
INDIA,
AND CONTROLS PLACED ON PURCHASES, EVEN
IMPORT DUTIES. THE BIGGER STORY IS INDIAN
SILVER DEMAND. IT HAS MORE THAN DOUBLED
THIS YEAR VERSUS LAST YEAR. AT THE CURRENT
PACE, THE TOTAL SILVER IMPORTS ARE SET
TO EXCEED THE RECORD SET IN YEAR 2008.
$$$

To put silver into proper perspective, the total annual Indian silver import
in 2008 was 5048 tons. But the price
was still below $20/oz, meandering in
the teens. The following year saw imports
plunge to 1285 tons, despite a stable
range in the silver price. The fluctuation
might be explained by an unstable Rupee
exchange rate. The imports during 2010
and 2011 were 3029 tonnes and 4087 tons
respectively, which is when the silver
price jumped past $20 and went toward
$50 in an explosive move.

The silver imports in
India are on pace to rival
record highs once again. The imports
during the initial six month period
suggest a notable shift in investor
demand towards the metal, certainly
a response to the ambush that softened
its price. According to kept statistics,
the national silver imports to
India
during the first five months of the
year have surpassed the total imports
during the entire year 2012. That
is a remarkable feat. The total silver
imports by
India
during 2012 were 1900 tonnes. Meanwhile,
the silver imports during the period
from January to May this year have already
reached 2400 tons. A shift from gold
to silver explains much of the gains. A significant rise in silver imports
has occurred during the three months
April to June, not coincidentally the
time of the massive naked short illicit
ambush by the crooked
New
York and
London
bankers, who would not permit a gold
market default on their watch.

An acceleration in demand is notable, resurgent, and strong. The total silver
imports from January to March were 760
tons. In the month of April alone, imports
surged to 720 tons. It further swelled
to 920 tons in May. The estimated year-to-date
total for the silver imports may cross
4000 tonnes when July data is available
to tally. Based upon extrapolation,
even if imports relax somewhat in the
remaining months of the year, the total
would easily surpass the 2008 highs. A distinct shift from gold to silver
has occurred among investor community
in India, since the sudden drop
in gold prices during mid-April. The
tight import curbs were simultaneously
imposed by the Indian central bank,
on explicit order by
London bankers. Silver is not subject to any import
restrictions. See the Scrap Monster
article (CLICK HERE).

##
PARADIGM SHIFT & GOLD MARKET SQUEEZE

◄$$$ DEFAULT FEARS ESCALATE AS A RUN ON PHYSICAL GOLD INTENSIFIES. THE
OFFICIAL VAULTS ARE FAST GOING EMPTY.
THE DISTRUST IS FAST RISING AMONG ACCOUNT
HOLDERS AND INVESTORS. THE BELIEF IS
BUILDING THAT THE GOLD MARKET IS NOT
SOUND, NOR IS THE CURRENCY OR BOND SYSTEM.
THE GERMAN GOVT REQUEST FOR GOLD REPATRIATION
STARTED THE PANIC THAT GATHERS MOMENTUM.
CONTRACT HOLDERS ARE STANDING FOR DELIVERY
IN BIG NUMBERS. MANY PEOPLE WILL BE
CHASING VERY LITTLE GOLD. IT HAS GONE
INTO HIDING. A SHORT SQUEEZE IS IN THE
EARLY PROCESS, FROM IMMENSE DEMAND,
WIDESPREAD FRAUD, AND DEEP SHORTAGE.
$$$

Grant Williams gets around. He is a sharp observer, with a keen view inside
the gold market. He hits on all chords.
His wisdom is deep. His summary is spot
on. But he knows nothing of Eastern
developments. The Jackass do. They provide
the trigger he yearns for and seeks
without finding. Nonetheless, his analysis
is dense and excellent. The full quote
is worth reading, all of it, nothing
wasted, nothing superfluous. Emphasis
is mine. Keep the cogent thoughts separated
by paragraphs.

Williams: "What is happening at the moment is going to be very, very
interesting. We are about to witness
the second act of this move in gold
that started in April. The beginning
of this saw a precipitous fall in the
futures price, against the backdrop
of voracious physical buying of the
metal (gold) itself. I have been saying
that we are really only going to
understand the structural changes that
have been made to the market, once we
see the price of gold going up.
We have now started to see that. In
the last few days we have seen about
a 4% rally in the price of gold, and
the miners in the form of the GDX were
up 17%. The early signs are that
we are going to see some sharp moves
to the upside here, and that certainly
looks like it has begun.

If
you look at what is going on in the
backdrop of this in the warehouses on
the COMEX, there are some very strange
things happening. If you look at the
holdings of that Big Three (HSBC, Scotia
Mocatta, JPMorgan), currently HSBC has
about 3.5 million ounces of gold in
their warehouse, Scotia Mocatta has
about 2+ moz, and JPMorgan was down
to about 100,000 ounces, which is absolutely
unprecedented. So all of this gold
is disappearing. It is going out of
the vaults. It is going out of the system.
It is going into private hands. We do
not know where it is going. I am sure
some of it is going to central banks
[in the East]. A lot of it is going
to retail investors. People are starting
to get worried that there may come a
day when they ask for their gold back,
like
Germany,
and be told they cannot have it.
So I am very intrigued to see what happens
in the next couple of weeks and the
next couple of months, because we are
going to see some explosive moves to
the upside.

Eric King brought up a critical issue, the combination of deep fractional banking
as gold market foundation against a
backdrop of rapid inventory declines.
The danger is acute for default. The
fraudulent basis is astounding.

Williams continued. "Let's talk about inventories because you did bring
that up briefly. The Open Interest hit
42.5 ounces of paper claims for each
ounce of physical gold, an all-time
record. It s almost unimaginable what
we are seeing right now. There has
been an awful lot of [physical] gold
that has been taken out of supply. [With
paper claims] certainly an all-time
high, that will pose a very severe problem
should certain events come to pass.
The main one is going to be people actually
standing for delivery and wanting to
take possession of their gold. All
of the evidence points to the fact that
[taking possession is] what people are
going to start to do. Gold has been
pouring out of the registered warehouses
on the COMEX. It is been pouring out
of the GLD ETF. So if you do start to
see people looking at these inventories,
looking at the overhang in futures,
and actually standing for delivery on
their contracts, there are going
to be an awful lot of people chasing
a very little amount of gold.

We
have seen [disorder] in the central
bank space, ever since Germany (the
Bundesbank) asked for a very small portion
of their gold back, which is 300 tons
of gold from New York. They were told
it would take seven years [to return
that small 300 ton portion of their
1436 tons of gold supposedly stored
at the Fed,] as your listeners [and
readers] well know. That is really inexplicable
to me. As soon as we saw that request
for a sizable amount of gold [for German
repatriation], we have seen the price
get hit significantly.We have
seen physical gold pouring out of places
looking like it is going to fill a hole
somewhere. That causes an enormous
amount of potential trouble, should
a whole bunch of other people decide,
'YOU KNOW WHAT, JUST TO BE ON THE SAFE
SIDE, WE ARE GOING TO TAKE POSSESSION
OF OUR GOLD TOO.'

This
whole fractional reserve gold scheme
was always at some point going to come
under pressure. It really feels to me
like the Bundesbank asking for their
gold back was the starting pistol in
a race to protect an asset that really
should never let out of your possession.
But that is what the [foreign] central
banks have done by leaving the gold
in vaults in
New
York and
London. Now they are going to be scrambling to get it back. This is
just at the time where a lot of other
[individuals and smaller funds] who
have claims on gold are also afraid
of the soundness of the system,
and are going to take delivery of their
own gold. We are going to have a lot
of people chasing a small amount of
gold, and anyone who has been in markets
for any length of time knows what generally
happens when you get that sort of situation." He describes a massive short squeeze coming in the near future. He describes
a panic in the gold market from revealed
widespread fraud and massive shortage that might not be describable in words, but staggering or enormous or historically
never seen before might begin to fit.
See the King World News interview (CLICK HERE).
Kudos to King for his hard work in the
last few months, attracting great guests
with solid information, to tell the
gold story well.

◄$$$
CHINA HAS PROPOSED A NEW GLOBAL
MANDATE TO REINSTATE THE GOLD STANDARD.
AT THE SAME TIME THEY ARGUE A NEW NATIONAL
MANDATE TO DOUBLE GOLD PRODUCTION, WHILE
ACQUIRING AUSTRALIAN MINING FIRMS AT
A RAPID RATE. THE ENTIRE WORLD IS IN
A SHIFT MODE.
CHINA IS PREPARING FOR A GOLD
FOUNDATION TO EITHER BANKING OR TRADE,
POSSIBLY BOTH. THE USDOLLAR WILL CATCH
THE FLATULENCE OF BOTH MAJOR SHIFTS,
SURE TO BURN BOTH EYES. $$$

On August 5th, the Peoples Bank of
China published an article
in a prestigious Chinese market journal
suggesting that the time is right
to convene a new Bretton Woods conference
with the intention of creating and implementing
a new gold-backed reserve currency to
replace the dying USDollar. The
direct challenge comes at a time when
the
United States leadership in banking wrestles with
hyper monetary inflation at a zero price
tag forever, and the White House is
pre-occupied by events in
North
Africa and the chief's personal golf
game. Fortifying the incentive and movement
toward a new Gold Standard is progress
within
China toward making aggressive acquisitions among
Australian mining firms, while arguing
a new national directive to double domestic
gold production.

Examine the giant Zijin Mining Group, the biggest gold producer in
China. It operates
Australia's Norton Gold Ltd
Company. Company officials report being
given a mandate to nearly double gold
production, holding the door open for
potential acquisitions. The newly hatching
China's mandate is to double national production.
Zijin CEO Dianmin Chen believes plenty
of mines are for sale in the Australian
gold fields and elsewhere in the world.
Also, Norton was always looking at potential
acquisitions. Chen said "We
see this lower [priced gold] market
as an opportunity to grow. We are not
going to stop at 300,000 ounces. This
year we are looking at an 11% increase
in gold production. Our mandate is to
double our production from our existing
platform. If we have extra M&A activities,
we would go beyond that."
Other footholds are being made in the
commodity arena by Chinese financial
firms. The French bank Natixis is the
object of the latest move by Chinese
institutions to expand into natural
resources markets. GF Securities wholly
owned subsidiary, Hong Kong GF Futures,
acquired Natixis Commodity Markets Limited
for $36.1 million. See the Blanchard
Online article (CLICK HERE).

More Chinese gold mine deals are in the pipeline, already at record levels.
Takeovers and asset purchases by producers
based in
China
and
Hong Kong rose
to a record $2.24 billion so far this
year, quickly surpassing last year's
record $1.96 billion, according to data
compiled by Bloomberg. Zijin Mining
Group (the world's seventh largest gold
company by market value) and Zhaojin
Mining Industry are among companies
looking to take advantage of the falling
market caps of target firms. Their share
prices have fallen an average 53% since
the gold price peaked in 2011. Yet another
unintended consequence of permitted
COMEX naked short market ambushes, as
foreign firms arrive to cart off properties.
Jon Price is managing director of Phoenix
Gold (PXG). He said, "
China's appetite for gold
is virtually insatiable. They have a
large bank account with which to work,
and a lot of US dollars that they perhaps
would rather see turned into physical
assets. I can see them being a dominant
player."See the Bloomberg article
(CLICK HERE).

A quip from the Jackass, perhaps closer to reality.
China
could really stir up the market by offering
to buy Gold & Silver output from
North American mining firms at a 10%
price premium. The gesture would emphasize
the absurd artificially low official
price, and lock in income stream from
foreign miners who pay up. Over time,
the new relationship could pave the
way for outright acquisition. With
or without a courting of Canadian mine
output, the Gold market is about to
undergo a major historical squeeze.
Shifting grounds, movement toward a
Gold Standard renewal, newly built platforms,
and global initiatives toward trade
settlement will create a powerful demand
for Gold bullion as the stable ballast
for the new systems. The next chapter
is being written, whether or not the
American leaders or American banks or
American people are part of it, or not.
It appears not!!

##
DISARRAY IN THE WORLD OVER GOLD

◄$$$ CONSEQUENCES OF THE GERMAN GOLD REPATRIATION REQUEST ARE BEING EVALUATED.
COLLAPSE IS CONSIDERED. DEFENSE AGAINST
BACKWARDATION IS THE NEW GAME. THE TACTICAL
PRIORITY HAS CHANGED TO PREVENT A BREAKDOWN
IN THE ENTIRE PERCEPTION FRAMEWORK.
THE UPCOMING BUST HAS A STRUCTURAL ASPECT
BUILT WITHIN THE PSYCHOLOGY OF THE GOLD
MARKET. IT IS BREAKING DOWN, STARTING
WITH THE APRIL & JUNE AMBUSHES,
CONTINUING WITH THE VAULT DEPLETIONS
AND LONG DELIVERY DELAYS. THE CLIMAX
COULD BE THE FAILURE TO REDEEM PRIVATE
ALLOCATED GOLD ACCOUNTS. $$$

The German Gold Reserves in the
United States are long gone,
and the German Parliamentary members
probably are well aware. They must have
been briefed long ago by the Bundesbank
insiders. The wealth has been confiscated
and stolen, used for financing the
United States war chest and furthering for global
full spectrum dominance that plagues
the world. The German Federal Bank authorities
have changed their game plan priorities.
They are actively trying to avoid further
speculation by referring to a non-existent
full transparency in the gold market
and banking industry. The entire system
will collapse when the main non-core
players come to realize the Gold market
is a fractionalized shell game, the
COMEX vaults a site of musical gold
chairs, the naked shorting a grand congame,
the GLD Fund merely gold in motion. The psychological warfare has entered
into the battle zone. Nobody in the
gold cartel wants the current backwardation
of the gold market to turn into a permanent
backwardation. It signals grotesque
shortage, distrust of existing gold
held on account, and the entire rigged
gold price system. The consequence
would be the inevitable collapse of
global trade and civilization as we
know it. See the Fourth Media article
(CLICK HERE).

◄$$$ THE INDIAN CENTRAL BANK HAS BEGUN STRICT CAPITAL CONTROLS. THE VISE
IS TIGHTENING TO PREVENT A GREAT OUTFLOW.
AN EXCEPTION WAS GRANTED TO THE LARGE
ENERGY PRODUCERS. THE VAST NEW GOLD
IMPORTS HAVE CAUSED MAJOR PROBLEMS FOR
CAPITAL AND THE RUPEE CURRENCY. SOME
BLAME GOES TO THE INDIAN CONGRESS WITH
A WILD SPENDING SPREE AS THE ELECTION
APPROACHES. $$$

Resident Indian citizens are gradually being obstructed from sending money out
of the country. The Reserve Bank
of
India
has imposed step by step harsher rules
that serve as capital controls.
The new measures impose reduced limits
of how much an individual can transfer
out as well as how much a company can
take as investment from overseas. All
these rules are effective immediately.
The tightening of rules works in overnight
pronouncements, done suddenly. Under
the rules, henceforth no money can be
sent out of the country for purchase
of immovable property located outside
of
India, by a resident Indian. Such measures may
next be expected for non-resident Indians
over the coming year. Suspicion mounts
for their funds possibly to be frozen.
Let the capital controls begin.

Formally, the rules stipulate a reduction in the limit for Overseas Direct Investment
(ODI) from 400% of the net worth of
an Indian Party, now down to 100% of
net worth. This reduced limit would
also apply to remittances made under
the ODI scheme by Indian Companies for
setting up unincorporated entities outside
India in the energy and natural resources sectors.
The reduced limit would not apply to
ODI by Navratna, ONGC Videsh Limited,
and Oil
India
concerning overseas entities in the
oil sector. The rules stipulate a reduction
in the limit for remittances made by
Resident Individuals, under the Liberalised
Remittance Scheme (LRS), from US$ 200,000
to US$ 75,000 per financial year. An
allowance is made for joint ventures
and wholly owned subsidiaries outside
India.
Current restrictionson margin stock
trading and lottery winnings would continue.
Usage of LRS for the purchase of property
outside
India have been prohibited. See the RBI official
statement (CLICK HERE).

A rejoinder note from EuroRaj, who has extensive experience and knowledge with
India,
Turkey,
and
Iran. Desperation is evident
by the Indian Congress. It is spending
like crazy in order to win the next
election, when their chances of a major
losses and embarrassment are quite clear.
A price inflation spike is on the horizon
in clear view. One can see exactly why
people in
India,
starting from the illiterate farmer,
then the middle class and wealthy alike,
save in gold. They do not trust politicians
and the bankers. All small households
and communities in their own way act
as their own central bank, with gold
held at its core. The blame for this
entire episode lies squarely with the
Congress and not the RBI central bank,
which is actually one of the most conservative
central banks around.

◄$$$
INDIA INCREASED VARIOUS GOLD
TAXES FOR THE THIRD TIME THIS YEAR.
THE LEADERS WISH TO CUT DEFICIT BY LIMITING
IMPORTS. THE NATION'S LEADERS HAVE TURNED
DESPERATE, AS THE TRADE DEFICIT REMAINS
HIGH AND THE RUPEE CURRENCY REMAINS
AT RISK. THE RESPONSE WILL BE A BOOM
IN SMUGGLING. $$$

The tariffs on gold and platinum imports were increased to 10% from 8%, while
the levy on silver was boosted to 10%
from 6%, as part of updated policy from
the Ministry of Finance. Taxes on shipments
of gold concentrates, ores and dorey
bars will rise to 8% from 6%, while
the duty on silver dorey bars will climb
to 7% from 3%. The Indian Govt also
increased the excise duty on refined
gold to 9% from 7% , and the excise
duty on refined silver to 8% from 4%. The Finance Minister Chidambaram
wishes to curtail gold imports to 850
metric tons so far this year with a
goal to reduce the Current Account deficit.
The broad deficit, which measures trade,
goods, services, and investment income,
widened to $87.8 billion, equal to 4.8%
of the gross domestic product in the
year ended March 31st. The unspoken
motive is to boost capital inflows that
will fund the many state-run financial
companies that issue quasi-sovereign
bonds. They are central to finance infrastructure
investments. The trade deficit is pushed
by crude oil and bullion imports, which
the central bank regards as the biggest
risk to the $1.9 trillion economy. The
Rupee fell to a record low of 61.805
per USDollar on August 6th.

The response from the markets to tax hikes, duties of
imports, and other obstacles will be
much greater smuggling. The official
gold import data might show a big decline
in the second half of 2013, but the
data will not reflect reality. The government coffers will be the losers, as the black
market will fill the need.
India imported 478
tons of gold in the second half of 2012,
taking full-year purchases to 860 tons,
according to the World Gold Council.
Imports by banks and other traders have
come to a near standstill after the
Reserve Bank of
India on July 22nd applied
restrictions to the jewelry business
and importers. With the latest duty
increase, more imports from the legitimate
channels will shift into the illegitimate
channel.

Imports had surged 87% to 383 tons in the four months through July, from 205
tons during the same time a year earlier,
as per Revenue Secretary Sumit Bose.
Silver shipments had jumped three fold
to a value of INR 127.9 billion between
April and July, from INR 42.8 billion
a year earlier. Consumption in
India, which imports almost all the bullion it
needs, accounted for 20% of global demand
in 2012. Bullion imports were 845 tons
in the twelve months ended March 31st,
while silver shipments totaled 1963
tons, according to the Ministry of Finance.
The data will be skewed from here onward,
as the black market smuggling trade
takes over. The Voice pitched in, saying "The black market and smuggling
tied to gold is booming in
India. Most of the gold comes from
Dubai." See the Bloomberg article (CLICK HERE).

◄$$$ IN
INDIA THE BACKLASH OF OFFICIAL
RESTRICTIONS AND TAXES IS LOST JOBS
FOR 500,000 WORKERS. THE JEWELER BUSINESS
HAS CURBED GOLD IMPORTS FOLLOWING INDIAN
GOVT RESTRICTIONS. $$$

Vijay Gopal is a goldsmith at one of
India's
leading branded jewelry manufacturing
unit in
Coimbatore.
He lost his job last month after three
decades. Gopal is not alone. The
Indian Govt's multi-lateral measures
to control and limit gold imports has
cast a cloud over the future of industry
workers, the collateral damage broad
and deep. According to industry estimates,
as many as 500,000 artisans, craftsmen,
and salesmen have lost their jobs since
June. Thousands more are expected
to be displaced from work. Ashok Minawala
of the All India Gems & Jewellery
Trade Federation said, "Due
to the shortage of gold in the market,
the fear of job loss looms large. Over
50% of the workforce (approximately
a million workers) could lose their
jobs if the government's decision to
discourage import continues. A great
many people are employed in this industry
on a contractual basis. Over 20 lakh
goldsmiths engaged with the manufacturing
units are sitting idle, though still
employed. The plummeting demand and
sales curbs have forced retailers and
manufacturers to slash worker headcounts.
A sense of fear and pessimism has permeated
the market." Essentially the
Indian Govt policies have created a
swap of problems. The Current Account
deficit might come down some, but the
unemployment and economic damage will
rise markedly to an important indigenous
business steeped in tradition and culture.
See the Hindustan Times article (CLICK HERE).

◄$$$ GOLD OUTFLOWS FROM
BRITAIN TO
SWITZERLAND SURGED IN THE FIRST HALF OF 2013.
THE INDICATION IS MASSIVE MOVEMENT OF
GOLD BULLION BEING SOLD OUT OF EXCHANGE
TRADED FUNDS, THEN SHIPPED TO SWISS
REFINERIES BEFORE BEING DELIVERED FOR
SALE IN
ASIA.
THE
UNITED
KINGDOM EXPORTED
240 TONS OF GOLD TO
SWITZERLAND
IN THE MONTH OF MAY ALONE, WHILE ITS
EXPORTS OVER THE FIRST HALF OF THIS
YEAR TOTALLED 797 TONNES. $$$

Macquarie is the source of the information, surely not desired for disclosure
by the scummy
London bankers. In contrast,
Britain exported just 92 tons of gold bullion to
Switzerland
in the whole of last year. Since
the
UK
has no gold mines, the obvious source
is the gold exchange traded funds (ETFs),
most of which hold their gold holdings
in
London
vaults. They are the popular investment
vehicles which issue securities backed
by physical gold, intended for the dumbest,
laziest, and most braindead investors
in the building. They saw huge outflows
in 1H2013. Two explanations make sense
on the Swiss destination. Distrust of
London banks during rehypothecation (theft by another name), or basic
distrust of the ETFunds for collusion
with the banks. Think both gold bars
above the table from transferred
accounts to safer Swiss locations in
allocated deposit accounts, and gold
bars below the table from stolen
accounts to aid the embattled Swiss
bullion bankers. They face multi-$billion
class action lawsuits for failure to
deliver on secured gold held on account,
with storage and insurance fees facing
fraud scrutiny.

The bigger reason in importance is summarized by
Macquarie. "But a bigger factor, we
think, is that the gold bars from ETFunds
have gone to
Switzerland, where most of the world's gold refining
capacity is [located]. It is to be remelted
into different size bars and coins and
then sold to end consumers, predominantly
in Asia, specifically
China
and
India."
Be sure to know that the Gold Exchange
Traded Funds posted their biggest outflows
of metal on record in 2Q2013. Data from
the World Gold Council showed outflows
of 402.2 tons of gold bullion between
April and June across the world. See
the Reuters article (CLICK HERE).

◄$$$ A GRASSROOTS MOVEMENT HAS BEEN INITIATED IN
DENMARK
TO JUSTIFY THE FULL ACCOUNTING OF ITS
66.5 METRIC TONS OF NATIONAL GOLD RESERVES.
BY LAW IT MUST BE WITHIN THE COUNTRY
BOUNDARIES. THE DANISH GOLD HAS BEEN
LEASED, ITS BULLION CONVERTED TO DERIVATIVES,
THE BARS STORED IN
NEW YORK,
LONDON, AND
CANADA. THE MOVEMENT HAS BEGUN,
TO RAISE AWARENESS AND TO MAKE DEMANDS
OF THE WAYWARD GOVERNMENT OFFICIALS
(ELITE THIEVES) TO REPATRIATE THE NATION'S
GOLD. $$$

A lead organizer is Troels Ketel Norballe, a Hat Trick Letter subscriber. He
anticipates the movement to go viral
across the stern august country. He
offered the following description ot
the national campaign to retrieve their
gold. His words and thoughts, my edits.
In simple terms, we are going to make
a viral campaign on the Danish social
networks, in newspapers, as well as
in user generated journalist sites. Our case will be made by documenting
that the national Danish gold treasure
has been leased out by the central bank
of
Denmark, called Nationalbanken. The Bank has
66.5 metric tons of gold. The law is
very clear. The Danish Central Banking
Act of 1936 requires that the Danish
money supply must be covered by a gold
hoard at a minimum of 25% of the aggregate
amount of Danish Kroner currency in
circulation.

However the law in place has been dispensed with for many years, ignored with
no political intervention debate or
input from the voting public. Today
the entire Danish gold account is committed
toward paper in contract derivatives,
surely being leased under the justification
that it pays interest as a paper asset
in the gold leasing market. These gold
reserves have been stored in the
United
States,
England,
and
Canada.
Our movement wants to raise awareness
about the Danish gold theft, just as
GATA has done. We urgently wish to start
a popular and politcal debate about
repatriation and legal action against
those responsible for the leasing and
vacating of the reserves to support
the current unsupportable fiat paper
currency system. They are elite gold
thieves. We will start with a Danish
homepage called "www.guldettilbage.nu"
which translates to something like "www.
the gold back now" in English.

◄$$$ THE GOLDBROKER.COM BUSINESS IS BEING INHIBITED BY SLOPPY OBVIOUS
BANKER DELAY TACTICS, BUT IT CONTINUES
AND THRIVES. THE GOLDBROKER.COM SITE
IS A BOUTIQUE THAT FEATURES ALLOCATED
ACCOUNTS IN SECURE VAULTS IN
SWITZERLAND.
$$$

GoldBroker.com is an FDR Capital business registered in
Malta,
with secure vault service provided in
Zurich.
The Founder & CEO Fabrice Drouin
Ristori (a Hat Trick Letter subscriber)
provided a description of the firm.
Goldbroker.com has been designed to
enable investors to own real physical
Gold & Silver and to store it outside
the banking system. They differ from
most of other gold companies because
with their service, investors own gold
and silver bars in their own name. They
own 100% allocated bars, with no mutual
or fractional ownership. See the website
description (CLICK HERE)
concerning ownership, choices, storage,
privacy, verification, and cost.

Fabrice summarized the business. "Our clients actually store Gold &
Silver in their own name, which means
that our secured storage partner knows
exactly the identity of each of our
clients and the serial numbers of the
bars they own. Our service has been
designed to avoid any counter-party
risks. So clients own and store in their
own name. Goldbroker.com does not store
for our clients. It is done directly
by them. That is why our clients can
go directly to the secured storage facility
and withdraw their gold without any
of Goldbroker employees being present
and without any exit fees. Our clients
can literally go and check their gold
bars themselves, which is better than
an external Audit.. Vault facilities
are in
Zurich
Switzerland. We are about
to launch a site in
Singapore.
Egon Von Greyerz is a partner in the
company."

The obstructions are many but surmountable, which are a regular nuisance for
the GoldBroker.com operations, but they
do not prevent them from conducting
a thriving little business. Clients
must wire them the funds for the investment
in Gold & Silver. However for about
a year, the firm has been experiencing
numerous problems to receive client
funds, which arrive but with silly delays.
The banks are trying to prevent clients
from moving their funds. Here are the
most common bogus explanations that
the clients have been given, and must
be endured. Banks are trying to prevent
the broad removal of funds out of the
system, perhaps before the massive bail-in
process which they are expecting to
implement soon. Despite all, the private
business of secured vaulted Gold &
Silver investment is thriving and will
continue to blossom. No obstacle is
too big to overcome when protecting
private wealth.

Very long delays to receive the funds, well above the official 24 to 48
hour legal limit for delays in
Europe.
Funds can take up to a week sometimes
to be received.

Banks ask clients to first have an appointment with the manager to explain
why they want to move the funds. Sometimes,
they are told they are not permitted
to move the entire transfer of funds
at once.

Phony IBAN mistakes are offered in excuse. Sometimes clients are told that
the banking transfer data is not correct,
when they are actually correct. So
it postpones the wire transfer, resulting
in repeated attempts.

Intermediary banks problems are also offered as excuses. The wire transfers
do not go through because of intermediary
banks problems. Few specifics are
ever provided.

Most of such problems are encountered in
Europe banks
for now, where most of their clients
are located. At times similar problems
are seen in the
United States as well.

◄$$$
PAKISTAN HAS BANNED IMPORT
OF ALL GOLD AT LEAST FOR ONE MONTH.
THE NATION COUNTERS A CURRENCY DEVALUATION.
THE BAN ON GOLD IMPORT IS INTENDED TO
SAVE THE HIGHLY VALUED FOREIGN CURRENCY
RESERVES. $$$

The Economic Coordination Committee (ECC) of the Pakistani Cabinet, headed by
Finance Minister Ishaq Dar, took the
decision to ban all gold imports for
one month with immediate effect. The
smuggling of gold to
India
has been causing Indian Rupee currency
devaluation. The importers were grabbing
at USDollars from the market to meet
the needs of the Indian buyers.
The strong black market demand is causing
problems for the Pakistani Rupee as
well. Gold in various forms has been
allowed in imports, even duty free since
2001. In support of the re-export of
gold products,
Pakistan had allowed the duty free import of gold
under Entrustment clause and Self Consignment
schemes of 2001. The ECC decision effectively
bans these schemes, the suspensions
to remain until the end of August. An
official review will be conducted, with
the intention to remove loopholes and
deficiencies in the plan. Attention
will be given to genuine exporters of
gold jewelry, whose work is to be coordinated
with the national objective of increasing
exports. While the
Islamabad officials have addressed the steep devaluation of their domestic
Rupee currency by banning the gold import,
no action has yet been taken against
the exchange outfits involved in hoarding
of USDollars. They hope to make big
fortunes after revaluation, according
to industry experts. See the Pakistani
Tribune article (CLICK HERE).

##
GOLD PUSHES ASIDE SHACKLES

◄$$$ ERIC SPROTT EXPECTS WITH BANK BAIL-INS, GOLD & SILVER WILL SKYROCKET.
THE SPROTT GOLD FUND (PHYS) SAW REDEMPTIONS
RECENTLY OF 2.6 TONS. DESPERATION FOR
PHYSICAL DELIVERY IS GROWING. THE NEXT
BIG FACTOR WILL BE BAIL-INS, THE WIDESPREAD
BANK ACCOUNT CONFISCATIONS AND THEFTS.
THE PUBLIC HAS YET TO RESPOND TO THE
CYPRUS BAIL-IN MODEL WIDELY
ADOPTED ACROSS WESTERN NATIONS. MONETARY
POLICY BY THE USFED WITH ZIRP AND QE
ARE A DISPLAY OF COMPLETE INSANITY.
THE GOLD PRICE WILL REFLECT THE INSANITY.
$$$

Eric Sprott expects a gargantuan rise coming soon for precious metal prices,
and their corresponding equities (mining
stocks). He forecasts gold price will
reach new highs within the next twelve
months, altering his endyear forecast.
The Western financial system is very
fragile. He pointed out the one event
which when it occurs, namely bank account
confiscations, will completely take
the lid off of gold. He believes June
28th marked the low in the gold price,
setting up a gargantuan price rise.
He expects mining stocks to rise between
300% to 500% in value. The catalyst
as Sprott sees it will be bank bail-ins,
the infamous dreaded bank account confiscations.
They have been enacted into law, with
little or no public reaction. The
citizens in the Western nations are
not prepared. They surely regard the
Cyprus
warnings as remote.

Sprott said, "The one event in my mind would be when it becomes apparent
to everyone that having a deposit in
a bank is a very risky situation. We
saw that in
Cyprus,
where the depositors got nailed on the
bail-in. We have seen all these proposals
to have bail-ins as the solution to
the problem in the
United States, in
Canada,
in
Great
Britain, in
New Zealand, and in
Europe.
All the paperwork has been laid out.
We are in a very fragile financial system
right now. We have most Western governments
buying their bonds, which is total financial
insanity. We have zero interest rates,
which is total financial insanity. Even
with this, we can hardly get the economies
to recover. What is going to happen
to those governments is the same thing
that happened to
Detroit. It is so cast in stone. It is amazing
that we all ignore it. The bottom is
in for Gold & Silver. I think the
returns are going to be fantastic. It
is probably a better time to buy than
it was in 2000 before the gold price
really started to move." See
the Bull Market Thinking article (CLICK HERE).

◄$$$ A NEW BASKET IS BEING MENTIONED IN PROMINENT CIRCLES, INCLUDING THOSE
WHERE JIM SINCLAIR HAS AN EAR. THE EURO-R5
MIGHT BECOME A TRADE STANDARD, FURTHER
DIRECTING ATTENTION AWAY FROM THE USDOLLAR.
REGARD IT AS JUST A TRANSITION BASKET
VEHICLE UNLESS GOLD-BACKED. NO NEW PAPER
CURRENCY SYSTEM CAN SUCCESSFULLY REPLACE
A PAPER CURRENCY REGIME. WITNESS A SLOW
TRANSITION TO A GOLD-BACKED CURRENCY
SYSTEM, THAT COULD INCLUDE A NEW GOLD-BACKED
NORDIC EURO. THE NEW GOLD STANDARD WILL
BE ENFORCE WITH TRADE AND SAVINGS, NOT
WITH BANKING SYSYSTEMS AND CURRENCY
MARKET. THE BANKS AND FOREX WILL FOLLOW
THE NEW LEADERS. $$$

The Euro-R5 proposed basket is cited by Jim Sinclair (aka Santa). It consists
of currencies for the next new team
aligned closely with the BRICS satellites.
They are the Euro from European Union,
the Real from
Brazil,
the Ruble from
Russia,
the Rupee from
India,
the Renminbi from
China,
and the Rand from
South
Africa. It is sometimes
referred to as the Euro-R4 without
South Africa included. Regard the Euro-R5 as
a teddy bear transitional object, with
the destination (adulthood) being a
Gold Standard and corresponding Gold-backed
medium for trade. Also, a new gold-backed
Nordic Euro could come from the alliance
in future months. The Euro is being
drawn toward the BRICS nations, an event
of major significance. Ironically,
even though the basket is built around
the Euro, its core in the Euro is the
weakest currency of the bunch. It carries
with it
Spain,
Italy,
France, and other weaker smaller nations, their
huge fiscal deficits, their large insolvent
banks, a demagogue Draghi as central
banker, and discredited new vapor bonds
as toxic bond patches. The important
point is that an alternative for trade
usage is being formulated, that includes
the tiger emerging nations of the BRICS
yard. Thesee key five nations are
the core of courage in defiance to band
together. They will create a gigantic
EurAsian Trade Zone. They have already
made good strides in the BRICS Bank
and another BRICS Emergency Fund for
financial rescues. The money has been
committed for both funds. The USTBonds
will be discharged in funding the new
alliance and its platforms, even its
energy pipelines. Think Return to Sender.

When compared with the USDollar on fundamentals such as annual deficit and trade
deficit, the Euro plus the 5Rs fare
significantly better. While the
United States has been piling on enormous deficits
of both kind for the last 30 years, the BRICS nations have been accumulating
significant FOREX reserves. They have
served as the global manufacturing sites.
Before too many more months, the USDollar
will be relegated for usage primarily
in the USEconomy. The forced devaluation
will be at least 30%, and probably over
50% soon afterwards. The USTreasury
Bonds have already begun the return
voyage to
New York
and
London
banks, where the bankers will choke
on them. The USFed and Bank of England
will be compelled to monetize the magnificent
volume of rejected USTBonds exactly
when the alternative currency basket
is introduced, whatever it is, whatever
it looks like. Already the Chinese Yuan
Swap Facility enables several $100 billions
in trade to be conducted outside the
USDollar Sphere.

The key significance is transition away from the USDollar in trade usage. The
ultimate goal is to return to a Gold
Standard, enforced through trade, not
banking. The currency market will follow
trade. The banking systems will follow
trade. The entire dynamic has been
backwards since 1971 when the Bretton
Wood standard for gold was broken. Keep
in mind that the Yuan currency has satisfied
a huge role in the last few years, in
particular the last two years. Much
trade has been steered away from the
USDollar. Any introduction of the Euro-R4
or Euro-R5 would instantly result in
two important events. First, an enormous
amount of additional trade would take
place outside the USDollar. Second,
the banks in the
Eastern
Hemisphere (where the BRICS largely
reside) would invest more in sovereign
debt for the BRICS nations. The big
lightning rod event would be the gold-backing
of the Chinese Yuan. In my view, that
event is coming, and is very likely
to be intermingled with the arrival
of the Gold Trade Settlement platform.
For instance, the Gold Trade Note used
as letter of credit might initially
be in the form of a special Yuan that
is backed by gold. After all, the Gold
Trade Note needs some recognizable denomination
used like a canvass, on which to put
gold paint.

◄$$$ IN THE NEXT CHAPTER SOON TO ARRIVE, THE USECONOMY WILL BE FORCED
TO ENDURE A REVERSAL OF A FULL GENERATION
OF EXPORTED INFLATION. THE ARRIVAL OF
USTREASURY BONDS WILL TRIGGER PRICE
INFLATION, NOT FROM THE USFED MONETARY
EXPANSION, BUT RATHER FROM A REJECTION
OF THE USDOLLAR. YET ANOTHER ECONOMIST
BLIND SPOT. $$$

The dirty secret behind Operation Twist run by the USFed in 2012 was to absorb
the USTBonds coming home to roost. The
USFed QE bond monetization programs
were set up to cover the USGovt debt
issuance, when foreigners lost their
appetite. That was the financial sector
response. Next comes the trade sector
response, which will avoid the hegemony
of banks with SWIFT codes and avoid
the omnipresence of the FOREX currency
market. The USEconomy will not be
pulling the global economy along any
longer. It has been mired in a powerful
recession for five years. When the USTBonds
are shoved back onto the
US
banks and USGovt to handle, it will
be the end of a massive generational
cycle, as the
United
States exported
inflation for decades. The reversal
of that export lies directly ahead,
the long-awaited inflation arrival to
the
United States. Next that same inflation will
be swallowed on the return to sender
stage. The USEconomy will be forced
to deal with unspeakable price inflation
from a deeply devalued USDollar, and
deal with supply shortage, and deal
with social disorder.

EuroRaj pitched in with comments. The Euro currency is in trouble, but it still
facilitates trade within the EuroZone.
All fiat currencies at the end of the
day are merely a means to facilitate
trade, by providing a formal medium
of exchange. The Indian Rupee only facilitates
trade within
India.
The Rand facilitates trade with
South
Africa, backed
informally by the once powerful gold
industry. The Ruble facilitates trade
with
Russia and its neighbor nations, backed by immense
natural resources of every type in
Russia and its Siberian extension. What is about
to change with a shattering realization
is that a debt-denominated currency,
which the USDollar is by default, is
not risk-free. The USDollar cannot be
saved by the endless free money distributed
by the USFed. It is not equivalent to
physical money, although its role as
legal tender is confused with the money
concept. The USFed and Wall Street have
been peddling the notion since 1971
that the USDollar is a risk-free currency,
and wrongly so. The backlash from
USTreasury Bonds returning to the
US
&
UK
banks will make for a powerful effect,
causing a USDollar deep devaluation
with all the nasty price inflation consequences.
Therein lies big risk, ignored for three
decades. The prevalent currencies should
never be used as a means of saving.
Gold will become the final means of
trade settlement, and the ultimate source
vehicle for savings. The global producers
will make certain that Gold returns
to its historical role.

◄$$$ A MINOR POINT, BUT WORTHY. THE THURBER'S SILVER DINNER SET IS RISING
IN PRICE. IT JUST REGISTERED A 24% PRICE
HIKE. THE TANGIBLE MARKET REFLECTS SHORTAGE,
UNLIKE THE PAPER COMEX NONSENSE PRICE.
$$$

A Hat Trick Letter subscriber in the
NorthEast US is an
avid observer of the sterling flatware
silver market. For over three months,
Elizabeth has been
monitoring Thurber's of
Richmond
to see if the price changes for a 5-piece
sterling silver dinner size place setting
of 18th Century. She wonders if the
price by Reed & Barton would drop
when silver prices dropped, especially
when silver price went below $20/oz.
In late July, a 5-piece setting cost
$600. One week later, it suddenly jumped
to $743, despite silver still being
mired at the $20 level per ounce, or
lower since June. That is a 23.8% increase
in a tangible niche market. One must
wonder if Reed & Barton are having
trouble securing silver for production.
In her view, the sterling flatware price
move is interesting, since the paper
silver markets seem to indicate something
completely different. The Jackass agrees.
See the Thurber website (CLICK HERE).

◄$$$ AT A COIN SHOW OUTSIDE
WASHINGTON DC, PREMIUMS PAID WERE 12.5% ON GOLD
EAGLES COINS AND ABOUT 30% FOR SILVER
EAGLES. $$$

Another Hat Trick Letter subscriber reported a coin show price effect. JamesS
from
Ohio attended
a coin show in
Annandale
Virginia. He looked
for Gold & Silver coins. The show
was very crowded with buyers, but not
many sellers could be seen. The gathering
had 88 dealers, but very few Gold Eagles
were available. The dealers who had
them wanted $1500 per gold coin. Based
on a recent Friday close of $1333, a
hefty premium indeed! The Silver coins
with 90% silver were equally scarce.
Several counters had Silver Eagles selling
at about a 30% premium. You gotta love
the field tests, the channel checks.

◄$$$ A BIG UPSIDE MOVE IN GOLD IS SIGNALED BY COXE. INFLATION ON THE STREET
IS NOT THE ISSUE. THE DRIVING FORCE
IN THE FAST RISING GOLD BULL SOON WILL
BE LOST FAITH IN FIAT PAPER CURRENCY,
AND THE RECKLESS PERMANENT HYPER MONETARY
INFLATION THAT THE MAJOR CENTRAL BANKS
ARE STUCK WITH. $$$

Legendary investor Don Coxe, Chairman of Coxe Advisors LLP, and former advisor
to the $540 billion BMO Financial Group,
has issued a powerful new commentary.
He offered a perspective on the gold
market, and other things. Cox said the
following. "The big banks have
the lowest exposure in their short position,
one of the lowest exposures in decades.
So you have those who know best [the
big banks] are no longer short, as a
matter of pure business principles,
because they see that this just does
not make sense, and those who are pure
speculators [small investors] with the
biggest short position in history. That
kind of thing cannot survive if there
is going to be any kind of continuation
of these expansionary monetary policies.
Therefore I do not think it is a matter
of if, but when, that we are going
to see an upside breakout in gold. I
remind you that in the 1970s, the huge
breakout in gold did not occur at a
time of the worst inflation. It occurs
once the people lose faith in the paper
money and the policies that are being
pursued. You get the rush into gold. The great game is going on at levels
where there are big expiring contracts
in gold. Our work has been trading in
the commodity. I can simply tell you
that the drama is unfolding where you
have got this gigantic short position.
Eventually the shorts are going to get
scared. It looks like from my perspective,
that we have seen the low in gold. Now
we are going to watch who loses the
most when gold moves to the upside,
which is virtually inevitable."